"Name one profitable company in the history of the entire stock market that went bankrupt due to SEC fines."
A trick question!
A company can file a voluntary Chapter 11 bankruptcy or a creditor can force an involuntary Chapter 11 bankruptcy. I know of no case where the SEC has forced an involuntary bankruptcy based on a company's inability to pay a fine. However, with certain specific exceptions, an SEC fine cannot be discharged based on a bankruptcy filing. The SEC, however, has been known to reduce or waive a fine based on a party's inability to pay...it happens WAY too often, if you ask me.
Where does that question come from? I NEVER suggested that an SEC fine alone could cause a JBI bankruptcy.
"Then when you come up completely empty, name one time in the history if the entire stock market where an entire private placement was the fine due to a non-cash asset write down."
I can't....actually I'm not going to look. But why use the phrase "non-cash asset write down"? You can't write down a cash asset. Besides, if there is a fine, it wouldn't be because an asset was written down, but because the asset was overstated. In this case VASTLY overstated, to the point where, in spite of it being of no beneficial value whatsoever, it was recorded as the company's largest asset by a factor of 2. And the asset that came in in 2nd place was Goodwill, which was ALSO determined to be overstated.
"The notion is rib-cracking laughable that little tiny JBII is going to get the same size fine is as the record-breaking Xerox "
I haven't seen anyone express that notion. Here's what I DID say:
"That said, defining "illgotten gains" and quantifying disgorgement amounts can be complicated and I don't think that there is any point at all in guessing where this is going in that regard."
If you are going to pose arguments that I haven't made and then refute those arguments, what the heck do you need me for? You should be the person responding to this post.
If you would like to not like something that I have actually posted, try this...it's my opinion:
Unless there are other shoes to drop in terms of culpability on the part of JBI or JB, the company's best bet is to try and get this settled and out of the way. This putting-on-a-brave face approach is an understandable initial reaction, but it's a lousy, unproductive strategy:
"The Company regrets that its attempts to negotiate settlement of this dispute failed, and, in consultation with its litigation counsel and Board of Directors, looks forward to vigorously defending itself in court, where the Company believes it will prevail on the merits."
The underlying allegations laid out in the complaint can't be refuted.
What it costs and whether the CEO retains his position are to a large degree up to him, but he must accept that he is not arguing from a position of strength. Maybe you should tell him.
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