Red Hat restatement triggers legal attacks

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If it gets to a judge

So far it looks like opportunistic sleazeballs hoping to rope in speculators that invested unwisely into a class action suit and pressure Red Hat into a quick settlement to get it off the plate. Then each investor gets a few cents on the dollar and the lawyers walk off with a big sum. I get a notice about every six months that I am a member of a class that agreed to a settlement I didn't know about, and I get a rental car upgrade, or some such.

If RH digs in its heels, let's see if the lawyers hang in there, and what kind of case they think they can make.

Let's see, the CFO left first, and the major downturn occurred. Are they going to argue that, if the stock is overpriced, the CFO has to remain with the company until the price goes down, or he has an obligation to jawbone the price down? Then they do a regression analysis to figure out how much of the drop was due to the CFO announcement and how much to the restatement, voluntary by the way, so they can convince a judge that there was tangible damage? And if the stock has rebounded by the time the case gets to court, then how do they state the claim?

I think I would rather be SCO's lawyers. At least they got paid up front. But at least, No_Ax, I have to admire your passion. It brightens up an otherwise slow Friday afternoon.

Posted by: IT_User   Posted on: 07/16/04 You are currently: a Guest | Members login | Terms of Use

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