I'm an italian investor, so don't know very much about the SEC and its powers. What results can we expect from the investigation in progress? what can they do?
Sentiment: Strong Buy
If the SEC doesn't act, it will sanction PUMP & DUMP abuses and the markets will turn into the Wild West.
Investors will lose all trust in corporate management, the markets and in any and all publications and media outlets that feature stocks.
Management (principally people that have knowledge of insider information) has a window during each quarter to buy/sell shares of the company. If the SEC finds that management selling of the shares were within the law nothing will be done. I question the amount of shares sold, but not sure if there is a law limiting how many shares you can buy/sell during those windows. If they are found guilty, I believe that the company will be fined (not sure if their D&O insurance policy will cover this) and management may also be sentenced to give back all gains from the transactions and may risk jail time.
I believe loomis112002 is taking this far too lightly. In the case of another biotech Imclone, Sam Waksal was sentenced to 7 years in jail for iATTEMPTING to sell and instructing his family and friends to sell based on his insider information. Remember, Martha Stewart went to jail for trading on the Imclone insider information.
The basis for the jail time was FRAUD and breaking securities laws.
From my perspective, the SEC investigation is the best scenario for GALE investors! This matter will be settled within a relatively short period of time. Chances remain very good the SEC will reach the conclusion that management did NOT commit any wrongdoing. The Class Action lawsuits will dissolve. And because the SEC will remain somewhat focused on GALE shares trading activities, there's a strong probability that illegal shorting of GALE shares will be reduced. Benefit to legitimate shareholders: greater stability overall.
I wholeheartedly agree with you, Dan. At this point an SEC investigation is the only way to obtain clarity of what has happened and restore confidence. I hope any investigation extends to the profiteering activities of AF, Gravitts and Cramer as well.
Sentiment: Strong Buy
yup... the SEC is watching GALE and the stock now. No games anymore people... straighten up. You little boogeyman turds who have been cheering Firestone and company are being read and scrutinized also... every damn one of your lying hateful posts.