As you may have noted the race is on to secure clients and the roles of lead counsel and lead plaintiff. This race, of course, is customary, and, currently, the deadline for becoming lead plaintiff is in June, consistent with a 60 days period.
One of the law firms' press releases (or, if you want, advertisement for clients, for that is probably a suitable description of what the press releases really are,) indicated that the lead plaintiff (ideally, I guess,) should have incurred losses in excess of $100,000.
This, of course, made me wonder what kind of losses the first (and, for now, I guess, only) plaintiff has incurred. Reviewing the first complaint, I was unable to locate the attachment that identified the lead plaintiff, which, of course, piqued my interest further, so I went to Pacer and read the complaint in its entirety.
The original complaint includes a certification statement by the plaintiff, in which he (Mr. Alfred Minotti) also details his investment in UNTK as.... wait for it.... one purchase of 500 shares on April 1st, 2013, at a per share price of $2.95. No further purchases are detailed and no sales are detailed, leading me to infer that, at $1.25 in per share price, the total loss incurred by Mr. Minotti is $850, or so, and this loss is unrealized and, therefore, merely a paper-loss, which, in principle, could be reversed tomorrow.
Clearly, under the law, Mr. Minotti's right to raise its claim is not limited by the size of his loss and, I acknowledge, of course, that it is possible that he had other transactions that he has not detailed, but, still, from a purely economic basis, it seems like a pretty thin basis to launch a class action suit that will tie up the company, the courts, and Mr. Minotti for a long time and at considerable expense.
So, the lesson may be that what it takes to sue Unitek is a $850 paper loss, plus a $350 filing fee, lots of idle time, and an eager law firm on contingency.
The auction is on. First bid to beat $850 in losses were Kahn Swick & Foti, LLC who plead for investors with losses of $100,000. Not to be outdone, Brower Piven is now pleading for investors with losses of $50,000. We are rapidly converging towards the $850 floor.