LD: Your firm has been hailed as a great model and proponent of contingency-fee work because of your success in picking real winners. Is there a secret to that?
MM: Yes, there is – it is the willingness to spend resources at the front end in deciding what case you should take. We end up agreeing to take less than 10 or 20 percent of the cases we are offered. We got a reputation now for being successful so we see lots and lots of those cases. I get two or three calls a week from inventors and technology companies. Our firm spends easily $100,000 to $200,000 per case on ones that pass the first hurdle. We spend sometimes $200,000 before we say no, but that’s money well spent because you can spend $10 million to $20 million very easily only to find out that you’ve got a problem. And you still can spend that much money because there is no way you can know all the possibilities. You have to spend a million dollars or more to do that kind of analysis. We have a rigorous system in place to determine which cases would be appropriate for us to undertake.
I suggest you reread this portion of the interview with the HA lawyer. Either the amount of money Aware received in Q12-2012 was just a minute fraction of what's coming. Or, Mr Stafford got fleeced by Daniel Carlineo. Or, we got fleeced by Mr Stafford.
Those are the possible choices. Pick one and act accordingly.
Of course in either case Stafford is accountable to the shareholders. There is no reason to withhold information here except to protect Stafford from the wrath of the shareholders. Otherwise there would simply be an explanation given.
Yes Madoff got away with his fraud for a long time. One major difference, Madoff's investors all thought he was a great guy. We know better. Stafford is in a "no where to go" position now. He either lets this whole thing kill him, or finds redemption before he gets to hell's gate.