You're the judge, from a couple years ago-On 1 April 2014, publicly-traded Pacific Gas & Electric Company (PG&E), one of the largest combination natural gas and electric utilities in the United States, was indicted on 12 counts of violating safety standards set forth in the Natural Gas Pipeline Safety Act of 1968, 49 U.S.C. § 60123, and associated regulations. The charges stem from a multi-year investigation into PG&E’s safety practices following a tragic 2010 pipeline explosion that left eight dead, scores injured and dozens of homes destroyed in San Bruno, California. The PG&E indictment has since been superseded to a total of 27 counts, now including a charge of obstructing the regulatory investigation that followed the San Bruno incident.
Several months later, on 17 July 2014, publicly-traded common carrier FedEx Corporation (FedEx) was indicted on 15 counts of conspiracy to traffic in controlled substances and misbranded drugs. The government alleges that between 2000 and 2010, FedEx conspired with certain internet pharmacies to ship and thereby distribute prescription drugs to persons who did not have a valid physician’s prescription. The FedEx indictment also has recently been superseded, upping the charged counts to 18, to now include money laundering conspiracy charges.
Interestingly, both the PG&E and FedEx cases are being prosecuted by the US Attorney’s Office for the Northern District of California (USAO). Whether this evidences a different approach to corporate criminal enforcement in this one of the 94 federal districts, or no more than coincidence, is at this point unclear.
Full article--Reexamining the notion that public companies cannot fight criminal charges
October 2014 | SPOTLIGHT | LITIGATION & DISPUTE RESOLUTION
Financier Worldwide Magazine
Well the state is no longer holding the criminal complaint against the company. I expect the market to reward this decision in the next few months.
looking at declining call volume- in researching a addiction center online search brings up the death in California- That bit of news scares away potential addicts from calling the company for help. I want to get better not DIE, I will go call someplace else.
At less than 2 a share they have done a good sabotage job all on their own.
We all listen to the most recent CC. And the metrics sound pretty good. But i postulate that the approval of the Laguna CA facility is the stumbling block in the near future. They currently have the facility staffed and ready to go upon the granting of the license I (my own opinion here) believe the license will be delayed if not rejected do to the current criminal complaint. Now the rejection will come in the form of needing deeper background checks for the employees, New policies and procedure for admission . This will raise costs for the company which will hurt the next top and bottom line. The caveat is -The lawsuit dismissed or the company wins in court and the license is approved . But Courts are fickle. Joke did you hear the one about a senior citizen walking into a bar for a drink . After a couple they leave but trip on the threshold of the doorway. Next week the Bar is sued for Elder abuse. That's how ridiculous courts can be. Not saying don't punish the guilty, just don't vilify the innocent.
The Company has many slip ups that can crush it. Primarily the overhang from the current litigation. secondarily what I see is the possibility that their California facility in Laguna will not get certification because of the litigation. Which might have a domino effect all thru the country. They keep borrowing at 12 %. And can not earn enough money to internally fund growth. Their estimates for EBITDA from acquisitions seems ridiculously high, previous owners could not earn any where near those numbers. The amount of restricted stock being used and when the restrictions drop.
They also need to show they can make money to reinvest in expansion , not just borrow their way to it.
If these guys do not want to switch their pay packages from cash to stock based compensation, they are sending a clear signal to what they think the stock is worth.
Cant seem to break Teva's grasp on the Copaxone mkt. Enoxoparin dead in the water- their not even talking about any benefit coming from that asset on any level. While their analytics are sound they can't seam to generate any sustainable product line that will move them to profitability.
Currently only Murder 2 charges dropped, with two defendants removed. Elder abuse against company and other current /former employees still ongoing. Financing not so much dried up. Announced more acquisitions/ expansions very recently. Hearing more paramedic calls for overdose than injury reasons - tells me -If this company can focus on the patient and have good workable practices and procedures in place they will be around for quite some time.