the total exposure of zagg to these lawsuits is 250 thousand - because they have a D&O insurance policy that covers their directors and officers liability. listen to the last conference call and you will hear it. so the lawsuit is just another way for the short sellers to manipulate the stock price down to the year-end. just 1 more month until the short seller manipulation is done. hold tight and buy more if you have cash.
PD...is def not a short. He has been here since, if not before me over a year ago. Actually, he has in the past, been one of our biggest advocates. PD, I cannot speak to those lawsuits that you were involved in because, I am just not familiar with the specifics, but as milveg states it seems to be apples to oranges. These guys arent being sued because the stole money and manipulated facts, they are being sued because it is claimed that the actions of one careless director (unbeknownst to him) caused a decrease in stock price. The officer should have known better then to risk a large block sale by trading on margin. The reason why these "law firms" are fighting to be lead plaintiff is the EASE of "settling" a sham case like this. The insurance company knows that a case like this, even if frivolous at best will cost them "X". so they will settle for anything less then "x", whether it is right, wrong or indifferent. This is a cost of doing business for them. The lead plaintiff loves cases like this, because they dont get rich if they win the suit. They get rich by increasing billable hours. And when you have a lawsuit against an insurance company they know for a fact, OR THE PARTNERS WOULD NEVER LET THEM TAKE THIS CASE ON, they will at a minimum file 60-70 motions and "bill" up a few hundred thousand dollars that they will collect most likely in a quick settlement. Even a "quick settlement" will be two years down the line. I mean if they moved quickly then how can they justify all those "billable hours". Class action lawsuits like this are a simple way for attorneys to create a stream of income.
Sentiment: Strong Buy
The fundies certainly support a Buy as does the time of year. That's why I'm concerned the meltdown continues. Usually when stocks defy logic somebody has information we do not. I talk myself out of re-buying ZAGG every day. I even have anecdotal evidence of the product's value. My daughter and I have identical Iphones. Her's has no ZAGG, mine does. She dropped her's two feet and the screen cracked. I dropped mine five feet with no ill effect.
D & O covers directors and officers. Why can't the existing stockholders be sued by former stockholders? That's essentially what these worms are advocating. If one of them succeeds it reduces the value of the company for any current shareholders. I think that's why the chart is a "turd."
that isnt the way the law works. lawyers sue the company and/or officers of the company. a D&O policy covers the company and the directors and officers of the company for legal claims arising from the actions of the directors and officers. on the conference call they clearly stated that their TOTAL exposure is $250,000 - that is the amount they have to cover before the D&O policy begins to pay (like a deductible). pdlenter - you are a short seller and that is the only reason you float the idea that shareholders will be sued. this is a dead issue. nice try.
I don't understand your comment. Stockholders are not suing other stockholders, they are suing the officers and directors for what they are claiming is fraud. The fact that those officers and directors are also shareholders is irrelevant. The point about the D&O insurance is that it will cover the costs of the lawsuit and any settlement once the $250k deductible is hit. If the lawsuit is successful it still only costs $250k, however the stock would likely take a hit because of public perception.
There is a clear short and distort campaign starting to take form as we speak. Every time one takes shape, major positive news is on the brink. Just read a motley fool article that should be sent to the SEC. Blatant misrepresentations such as RP selling ALL of his stock and a secret agreement over a year ago that RP would be gone. This is the LAST run down to begin covering and even buying. You will have some big institutions come in here within the next few weeks and we will get some major announcement soon. These shorts know what they are doing. I am BUYING more. I may be nuts but I am all in. Last time I was all in we rode it from 6.40 to 11. Weeeeeeee
Sentiment: Strong Buy