If I were an EBIX lawyer, and I am not, I would in some kind of way, in any suit from research papers, summon Danny Yu before the court as a material witness concerning Copperfield or Gotham. He would be the "goto" source for the damning material against ebix, but, he would also be under oath. I would love to see that tape. Maybe the Atty. Gen. Ga. could get some info from Danny, or, Sam, or, Greg, but, there again, the oath thing might hamper their ability to talk.
As an aside, in the class action lawsuit they aren't really arguing that the write-ups revealed any new information instead the issues merely repackage information already in the 10-Ks and in the Peak lawsuit (in public domain). Bottom line this means their analyses of the foreign statutory filings was completely disregarded by the attorneys arguing in the class action (likely because it is a crazy position).
If they did depose Mr. Yu perhaps it would ultimately lead to manipulation charges if they could get him to show that he understood that the nature of the statutory filings. If he comes off as simply stupid, which is likely the case, then he can get away with it as they could honestly be his opinions.
At the end of the day all the class action attorneys want is to survive at the pleadings stage. If they do that, they can extract a nice payday. I think their odds of success are low because to allow them to succeed from merely repackaging information in the public domain would mean that any writer able to move market sentiment can trigger a successful class action lawsuit and that just isn't the intent of the securities laws in my not so humble opinion.
Business performance. That is all I really care about.
Cohsgrad, thanks for your input, something to think about. I like it when someone has a, "not so humble" opinion, you just know where they stand and it is not likely to change. A little above a "strong opinion". It may be that Danny Yu could not pull off confrontation of the legal sort. That is pressure. I would not want to be taking the heat over, my term paper.
The problem for Yu to play dumb is I am willing to bet that the evidence will ultimately show that Yu is connected to the massive put buying and shorting which immediately proceeded many of the article's publication. It is hardly a coincidence that this trading often proceeded several of the articles publication sometimes by just minutes and often by a day or so. Likewise, electronic and phone communications will likely establish this link between Yu and those responsible for this trading. Those responsible for this trading had to know when these articles were going to be published in order to time their trades so precisely, and someone had to tell them this information.. Based on how poorly Yu has disguised his behavior by registering Gotham's office at UPS store, never having Gotham publish any other research on any other stock besides EBIX, setting up Gotham's website just days before the first article's publication, and so many glaring and obvious flaws in the analysis of his articles combined with the sometimes racial tone and non-objective and journalistic writing style of his articles makes me believe that Yu is not the sharpest knife in the drawer and probably failed to cover up carefully his end of this conspiracy. I would be very shocked if Yu said anything other than identifying himself if he was ever called to testify and instead takes the 5th.
I should add that if Yu and crew were called to testify either in a deposition or trial in connection with any of the pending civil matters, they would also very likely be able to take the 5th Amendment and say nothing. Although the civil lawyers cannot get a wire tap, they do have subpoena power and can obtain much of the same information that the government can via subpoena.
The 5th Amendment is going to be the biggest hurdle here to get any direct testimony from Yu. Even if he has not been charged with a crime, he will be able to take the 5th Amendment and say nothing because I think it is clear that he could be charged with a crime. Nevertheless, the government can issue subpoenas which force Yu to torn over all of his e-mails and/or text messages and can also obtain these items directly from his internet and cell phone providers and recipients without Yu's permission or prior knowledge. I suspect that these will provide quite a bit of useful evidence. Phone records are extremely useful in uncovering those who are part of this conspiracy. They will show who has been talking to who and how often and for how long. The U.S. can also obtain a wire taps and listen to future calls with sufficient evidence, and just the evidence against Yu that is just publicly available may be enough to get the wire taps issued -- not to mention the likely large amount of evidence that U.S. would have obtained privately if its investigation has gone in that direction. The U.S. will also be able to question others about what Yu said and did to build a case and threaten them if they do not cooperate. I think the same issues will be faced in connection with Atar and Farrell, in addition to certain First Amendment protections for Farrell. This is in my view is going to be a VERY easy case for the government to put together should they decide to go after Yu and crew for this short attack. Just on my own and without subpoena power and just through publicly available information on the internet, I have been able to establish quite a bit of very damming evidence against Yu and crew. Uncovering a conspiracy like this is something the U.S. is extremely experienced at doing well. Yu and crew are not nearly as tough of a group to unmask as many of the mafia groups that the U.S. has dealt with successfully many times over.