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Creative Edge Nutrition In FITX
Posted On: 04/01/2014 11:24:12 PM
Post# of 56324
Posted By: ChicagoInvestor
Re: SIObserver #10677
It's a double edged sword because the litigation they're really referring to is litigation from the shareholders. So yes, you want really smart attorneys, but with equity like this, those same lawyers can come back and bite you in the ass as a shareholder. They have to be on the look out for SEC litigation, but even more so, litigation from shareholders as a result of an SEC violation. Getting penalized by the SEC is a pain, but getting sued by your shareholders because you behaved negligently with their entrusted money is an even bigger issue. As you can imagine, this portrays complete lack of confidence in company management. So if you're on the board or you're an officer of a company that is susceptible to volatility, you need to please the SEC, but also not violate confidence of the shareholders. FITX has done a pretty good job so far, considering the financial circumstances of the company.

-CI













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