"On December 23, 2009, the Registrant was served with a lawsuit filed by the Selling Parties in the U.S. District Court, Southern District of New York, seeking a declaration that as a result of its alleged failure to comply with the notice deadline in the Purchase Agreement, the Registrant is barred from seeking any such purchase price adjustment. The lawsuit also seeks to enjoin the Registrant from repurchasing the Restricted Shares and the escrow agent from effecting any such repurchase by the Registrant."
Looks like management f-ed up and did not give Dieter and Brad sufficient notice to recall $4.5 million. That is a major screw-up. Somebody's head will roll.
And, if Brad and Dieter are wrong, then this means that the infighting has begun in earnest.
Brad and Dieter are on the board and are suing the company in their capacity as shareholders. This is not good.
Maybe Brad and Dieter will just buy the company back.
The TX boys already found a way to take $2 million out of Dieter's pocket. The bank took the collateral and now WHLM owes the money to Dieter...... until they offset against the money that Dieter owes WHLM.
Dieter and Brad should have done some homework on the TX crew. They have a history of fighting with management and usually winning. In this case I don't think that Dieter and Brad are active managers in WHLM. Even if they are, they are still two of the largest shareholders and can not hurt the Texans without hurting themselves.
The date? It would seem that it is an easy thing to prove one way or the other. The fight is mainly about the pie. I wish they would work on growing the pie rather than ripping it up.
Share price going down? Perfect time for the Texans to buy more on the open market. That is also one of their habits. Look at PZZI for the past 5 years and see how they operate.
Dieter was "over" the company when he sold. He had built it, nurtured it and lived with it a long time. Brad and others wanted a capital event and money, and Dieter was tired, so they tried to reap a big pay-day.
In hindsight, this may be more work for Dieter that he would have had if he had just kept working.
Those Texas boys - - - big hat; big ego -- big cow chips.