Replies to post #237985 on Plastic2Oil Inc (PTOI)

[loanranger]

It sure is curious, but the common sense approach has bitten me on the ass once on this deal already. The idea that HYPOTHETICALLY a purchaser of shares in the class period could continue to hold and HYPOTHETICALLY secure a gain on the future sale of the same shares (don't say it!!!) while in the interim collecting a recovery for being "damaged" is flippin' baffling.

Jaxstraw (thank you) provided an example that made some sense of it for me....note the highlight.
"For each share of Tyco common stock purchased or otherwise acquired during the Class Period that an Authorized Claimant continued to hold as of the close of trading on June 7, 2002 (the end of the Class Period)........etc."

The basis for "the end of the Class Period" date in the JBI class action is that on 1/4/12 investors became aware of the SEC allegation of fraud and should not benefit from a claim for any losses in the share price that they incurred after that date...the theory being that, if they chose to hold after that date any losses after that point were (and in some cases are) the responsibility of the holder and not the perpetrator.

It SHOULD BE obvious that anyone who feels that they can "simply hold my specified period shares to zip point zero and I will get a larger pennies::dollar settlement !" is likely in for a surprise. The suit, hence the proposed settlement, should be for damages occurring during the class period, not before and not after.

I believe, although in an abundance of new found caution do not declare, that IF a settlement is reached, any claims for damage to the value of shares currently held, or held beyond the end of the class period, will only apply to the loss of value in shares purchased during the class period as of the end of the class period. Period.


ps. I wonder whether, at the time of the sale of the shares on which a recovery is secured, that recovery would need to be reported as additional to any gain or a reduction to any loss on that sale. Glad I don't really need to know the answer to that one.