It is VERY common for insurance companies to initially "deny" coverage until they have investigated the matter. In this case, the carriers want to see if there is any "fraud" or "misrepresentation" on the part of LL that would void their responsibility. If no fraud and/or misrepresentation is found, then the carriers will be forced to indemnify the company as that is what they have been paid premiums to do! The carriers can't simply agree to accept premiums and then, when a claim comes in, simply refuse to indemnify them. There isn't a court of competent jurisdiction that will allow such a one-sided interpretation of their contractual responsibilities.
Funny how a "rumor" that FTC was going after LL causes the stock to lose steam after CNBC blasts it once again. Now, the FTC announcement has NOTHING to do with LL and CNBC is silent. SHOCKING!
Clearly you are not an attorney. Fraud is difficult to prove because there has to be "intent". Unless there are e-mails, videos, correspondence, etc. showing that LL instructed its suppliers to violate the laws, it's going to be difficult for the insurers to walk away from their responsibility. Imagine, with all of the technology available today, if there are NO tangible evidence, then maybe LL is, as they've said all along, innocent of the charges levelled.
You are assuming information on 60 minutes is 100% accurate. If you recall, 60 minutes FIRED producers and walked away from Benghazi story which was also 100% accurate! News reporters want NEWS. Think about it. Why encourage the words of a short seller who has an ulterior motive if the facts, ON THEIR FACE, were solid.
He had a little over 44,000 shares. If this holding now represents 3.8% of his portfolio and he's managing a little over 90 million, that would mean he would have to double his position.
This is the greatest STOCK SCAM of the century. Tilson SHORTS the stock knowing it's going down and then buys options and/or stock knowing the stock will rebound! There is NO way Tilson is going to allow his million dollar plus investment to fade due to his vanity. He may be right (or wrong) on the stock but he is greedy enough not to be stupid. To that end, SHOW TRANSPARENCY SO WE CAN ALL SEE YOUR REAL POSITIONS! Anyone else agree?
How is it that every analyst has been able to test LL's product and the government's test results haven't been revealed? Clearly, there would be stock movement, either up or down, on the findings. It's time for the government to be transparent and release its findings!
Strasser estimated laminates are about 20% of the company's total business, with Chinese-made laminate half of that, or about $105 million.