In general, there will be a "bucket of cash". My guess it will be $10 million with the law firm getting 30%.
How much you get depends on how many people file claims. In general, you'll get 2% to 5% of your loss (usually closer to 2%).
It is a class action suit. . Particaption will depend on the rules set by the settlement.
In general, you'll be notifed by mail if you held shares during the time period. You'll have to caluatute your loss as directed in the notice. If you don't do anything, you get nothing. If you lost a lot of money, its worth it.
I've gone throught it several times.
After I posted I checked for new court filings. Plaintiff had filed an updated complaint on Monday. Nothing material, they just updated the filing to get it current.
Company said it would be getting $7million upfront from an RC sale this Q (upgrade by existing customer to larger plant). I'm expecting a settlement of $10 million for SH lawsuit. The parties are book for mediation this month and are to report back to the judge in about a week. If the RC plant sale closes and the SH law suit settles for $10 million, there should be no need to raise cash.
One we get past the SH settlement, debt will be paid off quickly and cash will start building. Then........... Dividends or buy back? At the current price, buy back makes the most sense to me.
wish we were up more, but not concerned about the small drop on light volume. . Our time will come. This said, we need to get relisted, pay off the debt, settle the class action lawsuit and sell some RC plants. We're getting there but work needs to be done.
Not sure how stock will react this morning? Expect we'll move up. News, reports and earnings are all very good.
Would love to she move back above $10 today, but can't project how we'll trade short term (maybe nobody cares that she's raising like a phoenix from an abyss?)
The company spent a lot of time on the revenue recognition issue in the 10-K.
In short, when ADA receives more cash than CCS has income, ADA reports the cash they've received as "income" and ignores CCS's book income. As long as ADA is selling plants, I expect this to continue. The situation is caused by CCS getting "prepaments" that are later amoriatiezed (like the $7 million in Q2).