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Spectrum Pharmaceuticals, Inc. Message Board

  • hopefullyolderwiser hopefullyolderwiser Mar 15, 2013 10:00 AM Flag

    What's the downside to joining the lawsuit if I purchased and still own shares?

    I bought around 2000 shares and the value has been halved...

    Isn't the worst case if they find something, you get some of the award?

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    • I think the idea of having to "join" the lawsuit is incorrect. These lawsuits, which will eventually be consolidated, will be filed as class-action lawsuits that cover all shareholders who qualify based on the dates they owned shares. Everyone who owned shares during the relevant period will qualify and will automatically be included. In order to NOT be included one would need to opt out. The only reason to do that is if you eventually disagree with whatever settlement they come up with and you want to challenge any award and file your own lawsuit. This rarely happens. Otherwise the lead plaintiff attorneys will get all shareholder information from the company in disclosure and eventually contact each shareholder individually to update them and provide the opportunity to opt out.

      So, there is no "downside" because it's almost automatic. And you are not "waiving your right for pennies on the dollar" as another poster opined. If the case is settled or eventually decided in court in favor of the plaintiffs (all of us), then everybody shares. Just don't count on it being much, or happening soon.

      Sentiment: Hold

    • My understanding is if a judgement is awarded in favor of the class action, you would get something if your transaction occurs within the specified period and you opt to send the information regarding your trade. If your trade results in a gain/profit you would be excluded from any award (eg if you hold and the share price goes over your original purchase price). The attorneys will get compensation in terms of fees/expenses which cannot exceed 1/3 of the award. The process is usually a lengthy one- 3-4 years is typical.

    • There is no downside, if you feel you were defrauded, go for it, it is your right.

    • waiving your right for pennies on the dollar..driving your remaining share down farther and losing even more..personally if Raj did not know then he did not know...it woudl suck to waste a bunch of money and then the hosp come back and say we have decided to order again...

    • I purchased around 2000 shares which were worth $25,000 and were cut by 40% overnight.
      I also recommended to a friend which now I feel terrible about.

      • 2 Replies to hopefullyolderwiser
      • golfcove@hotmail.com golfcove Mar 15, 2013 10:55 AM Flag

        I feel your pain, and everyone is saying the shorts are still in control. They just got a great gift to cover. I would be surprised if they go thru the weekend shorting this stock !!!!!!!! If the do start to cover there could a serious POP-only time will tell. Let's see how greedy they are. I do know that if I had shorted this stock I would hav covered yesterday.

      • my guess you can always join the lawsuit but don't expect any miracles. Usually these are very long process 2 to 3 years, the D&O insurances end up settling for the company, lawyers make a bunch of fees and not much is left to shareholders. Unless there is fraud, which could be the case but I will here to not judge this, you have invested in a company and must have done your due diligence, understanding the products, the financials and the risk/rewards. lots of these lawsuits are brought in by "ambulance chasers" type of lawyers and they are too happy to settle the case to cash in couple million $ in reimbursable fees. Good luck to you.

 
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