I thought I would start a new string so we can narrow or expand on what I am looking for.
My initial thought was to look for the following:
A chinese RTO (small cap) that has been sued, not dismissed, went dark and reached a final settlement.
We can discuss the obvious ones such as RINO or Sino Forest. But that is not what I am really looking for. See, two weeks ago, I was using the argument that since APWR had settled that they should come out of the closet. But then I looked and they don't have a final settlement until either August 22nd or October 22nd. I cannot recall which.
LBCB is all over me the last few days because I posted the conversation I had with the securities attorney. What he didn't ask me to do was to prove that there was an RTO that after the final settlement they came out of the closet and became current with the SEC. So I challenged myself without his advice. So far, every one I have found are not even close to a final settlement. How do I know this? Because they don't even have a proposed settlement in front of the judge.
Cases that were dismissed don't necessarily apply because most of those companies stayed current. SCEI did not go dark until after their dismissed case was reinstated by the judge.
You see LBCB, while I might have had a conversation with an attorney that relieved me of my concerns about them being dark, I still have concerns that they may not become current after the final settlement. It would be nice to find one that did, but so far non of these cases have settled.
So far, it still looks as though SCEI is going to be first to have a final settlement.
I will keep you all posted If I find anything of interest. Your input and suggestions are greatly appreciated.
ZST Digital has so far failed to respond to the court’s orders.
In his court filings, Plaintiff Deutsch alleged that ZST Digital and other Chinese companies have “gone dark” and ceased filing reports with the SEC in order to lower their stock prices and make a “going private” transaction less expensive. The court-ordered buy-out option requested by Plaintiff Deutsch was based on court-ordered buy-outs in the context of closely held corporations. Plaintiff conceded the unprecedented nature of the “put” remedy in the public company context. The court’s order will effectively prevent ZST Digital from undertaking a “going private” transaction as many other Chinese companies have done over the last several years. (More than 100 Chinese companies have “gone dark” or “gone private” since January 1, 2008.) Any effort to cash out U.S. shareholders now would undoubtedly face substantial court obstacles given Deutsch’s put right and the receivership order. What impact this will have on the company’s U.S. shareholders remains to be seen.
As ZST Digital has simply failed to respond to the lawsuit, Deutsch’s extraordinary legal victory may have little practical impact so long as the company stays out of the United States and does not attempt a transaction with its U.S. shareholders. ZST Digital has no U.S. assets for the receiver to seize and has so far shown no inclination to pay the put price required by the court’s order. Nevertheless, the case shows that the Delaware courts are willing to use every conceivable remedy against a Chinese company that they perceive as having flouted court orders and ignored the corporate-law rights of U.S. shareholders. The decision leaves both ZST Digital and its shareholders in limbo.
another win for shareholders, to bad they didn't get a dam dime!
Putting this up toward the top, so it doesn't get lost in the static.
Thanks for your input. Also, thanks to Waldoa.
Here are a couple more for consideration:
Bodisen Biotech BBCZ
China Yingxia International Inc. CYXI
BBCZ I've already mentioned. They were delisted from the AMEX back in 2007 (I believe), so they had nothing to lose by "going dark" (addresing realdutch's concern).
I have a tentative list of others going well back into 2010; I'm going to pursue these a bit further, as I have time, because I think they are arguably the precursors to the wave of filings in 2011. However, I'm fairly confident that CYXI was proved to be an outright fraud, and there may well be a large proportion of similar cases in that early group.
"Cases that were dismissed don't necessarily apply because most of those companies stayed current."
I disagree. If "going dark" is the defensive strategy of choice, I'd think that we'd see that represented even amongst those RTO's against which suits have been dismissed. Furthermore, your use of the word "most" implies that some of that group did, in fact, "go dark",which makes an even more compelling argument for examining these in greater detail.
How have the companies that remained current fared as compared with those that didn't? Have those companies that ceased reporting since become current? Did any of these delist / relist? Have any gone private, and under what terms?
Seems to me that there's a fertile field of research, here, that can be pursued until some settlements are finalized.