Replies to post #99994 on Liberty Star Uranium and Metals Corp (LBSR)

[kickedoffagain]

You mean there aren't people willing to fund such an effort for nothing?

I'm Shocked.

[WillyburgD]

No lawyer would take the case b/c there is no case.

By issuing those shares under a stockholder approved stock incentive plan, LBSR triggered a (punitive) ratchet provision under the warrants held by those hedge funds. These funds sued to collect on the additional shares they felt they were owed and a settlement was reached. Those warrant holders were in privity of contract with the company and so had grounds to sue to enforce those provisions. But on what basis would the shareholders sue LBSR? 10b5? Nope. Waste or fraud? Nope. It was entirely w/in the right of the company and its officers and directors to issue those shares. It just so happened that it triggered a contract right existing in the warrants.