"The shareholders have every right to pursue civil action against others associated with shares sold by the company and thus no longer property of the company", but that is not the issue that I'm trying to address, nor is it the issue addressed in the current Sasser motion (at least as I understand it).
Warning!
Continuing to read this post may be a huge waste of time.
The company issued 3 billion shares. The theory behind the current motion.....again, as I understand it.....is that certain parties sold shares into the market above and beyond those 3 billion shares illegally and at a cost to shareholders based on the dilution of the value of the shares they held.....shares that they had reason to believe were issued by the company. (Please don't tell me that there's no proof of this....I know it, you know it, everybody should know it by now. I'm asking about the hypothetical legal issue.)
I'll try again, this time purely hypothetically:
1. Company in Chapter 7 bankruptcy.
2. Shareholders feel that so-called counterfeit shares have been sold and hence, effectively created, by certain parties.
3. Judge tells them fine, figure out who they are and sue them.
"Unfortunately, the estate lacks the money to conduct the investigation they request."
"The shareholders may, of course, conduct an investigation at their own expense consistent with the Bankruptcy Code and Rules."
Whoops!!!
I just answered my own question. The judge doesn't offer the shareholders any claim to any proceeds from any legal action taken against the naked shorters, he just tells them to go ahead and INVESTIGATE if they want, he's not going to substitute his own judgment for the Trustee's and compel the Trustee to investigate. So the shareholders would have to hope that any recovery achieved in any legal action...NO MATTER WHO INSTITUTES IT....would offer them some leftovers after it was turned over to the estate for the benefit of the creditors. And the shareholders would have to consider the risk that the cost of their investigation might be just more money into the porcelain receptacle. Seems appropriate.
Only one dopey idea left to break out....sue the Trustee. That'll get kicked around for a while before it dies a lonely death along with the rest of the failed ideas.
I think I get it now.
Thanks :o)
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