That Grampp suit isn't going to generate much payb
Post# of 43066
Posted On: 05/12/2014 5:10:13 PM
Re: PaperProphet #7977
That Grampp suit isn't going to generate much payback. I did look carefully at the proposed settlement, and discussed it with someone who is much smarter than me about that type of thing, who pointed this out as a part to read carefully:
"The number of shares will be dependent on the price of JBI shares as of the Judgment Date. If the price of JBI’s common stock is less than $0.50 per share (based upon the average closing price for the 90 trading days preceding the Judgment Date) on the date of the Judgment, the Company will issue three (3) million shares of common stock which will comprise the
Settlement Fund. If the price of JBI’s common stock falls between $0.50 and $0.70 per share, inclusive (based upon the average closing price for the 90 trading days preceding the Judgment Date), the Company will issue two and one-half (2.5) million shares of common stock which will comprise the Settlement Fund. If the price of JBI’s common stock is more than $0.70 per share (based upon the average closing price for the 90 trading days preceding the Judgment Date) on the date of the Judgment, the Company will issue one and three-quarters (1.75) million shares of common stock which will comprise the Settlement Fund."
This seems to say that a maximum of 3,000,000 shares will go into the fund. That's only $480,000.00 at today's closing price. By the time the settlement is approved, it may very well be a fraction of that, or JBII might not even be trading. Investors are outta luck on this one. The only way to recover would be to risk a lot of money in a lawsuit trying to pierce JB's corporate veil, going after his personal wealth. It might take an angry "whale" who could afford to be more concerned about serving up some justice rather than the money itself. Maybe there are young litigators out there looking to make their reputations by taking on a case like this for contingency. There's so much material in the public domain, including the SEC and OSC settlements, that a lawyer would hardly have to spend much time on research. Discovery would be a walk in the park.
"The number of shares will be dependent on the price of JBI shares as of the Judgment Date. If the price of JBI’s common stock is less than $0.50 per share (based upon the average closing price for the 90 trading days preceding the Judgment Date) on the date of the Judgment, the Company will issue three (3) million shares of common stock which will comprise the
Settlement Fund. If the price of JBI’s common stock falls between $0.50 and $0.70 per share, inclusive (based upon the average closing price for the 90 trading days preceding the Judgment Date), the Company will issue two and one-half (2.5) million shares of common stock which will comprise the Settlement Fund. If the price of JBI’s common stock is more than $0.70 per share (based upon the average closing price for the 90 trading days preceding the Judgment Date) on the date of the Judgment, the Company will issue one and three-quarters (1.75) million shares of common stock which will comprise the Settlement Fund."
This seems to say that a maximum of 3,000,000 shares will go into the fund. That's only $480,000.00 at today's closing price. By the time the settlement is approved, it may very well be a fraction of that, or JBII might not even be trading. Investors are outta luck on this one. The only way to recover would be to risk a lot of money in a lawsuit trying to pierce JB's corporate veil, going after his personal wealth. It might take an angry "whale" who could afford to be more concerned about serving up some justice rather than the money itself. Maybe there are young litigators out there looking to make their reputations by taking on a case like this for contingency. There's so much material in the public domain, including the SEC and OSC settlements, that a lawyer would hardly have to spend much time on research. Discovery would be a walk in the park.
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