7 THE COURT: Once again, though, if you prove it's
8 all false, if you prove that the guy -- even if you
9 were able to prove that the guy just sits around and
10 makes stuff up for sport --
11 MR. HUFFMAN: Right.
12 THE COURT: -- if you're able to do that, what's
13 the -- how do you get past the next couple of links
14 that you need in your chain; that is, how do you show
15 it caused any damages and how do you show that --
16 MR. HUFFMAN: Well that's for the finder of fact,
17 in deed, to make that nexus. But we show the postings
18 and you can show that --
19 THE COURT: Well isn't that me?
20 MR. HUFFMAN: It is.
21 THE COURT: Yeah.
22 MR. HUFFMAN: But we show the -- Judge, I believe
23 the evidence is there. This isn't my first rodeo.
24 THE COURT: Well I'm asking you so let's hear it.
25 MR. HUFFMAN: Okay. So he makes a posting on a
1 Tuesday -- all right? -- or a number of postings,
2 saying that there's insider trading, they're stealing
3 treasure. Because this is a treasure recovery company
4 that's out there on the east coast. Okay?
5 THE COURT: I thought he was saying that there
6 isn't any treasure.
7 MR. HUFFMAN: Exactly. Right. Or he says there
8 isn't any treasure or they're stealing it, or they're
9 giving these fraudulent and security ... and then the
10 next day there's a massive sale. Okay?
11 Or have people available who can come in and
12 testify that would have put money into the company
13 directly, but they read his postings and they did not.
14 We also have people available who said they read
15 his postings. They were shareholders of they company.
16 They sold, thus driving down the price because they
17 sold.
18 THE COURT: But when they found out it was false,
19 did they buy it back and drive the price back up?
20 MR. HUFFMAN: Well, Judge that's not really --
21 THE COURT: No, it is. You've got to understand.
22 You can't show a temporary change in price which --
23 you know, if the price goes down tomorrow because of
24 something that somebody said that was false, the rest
25 of the world realizes it's true the day after
1 tomorrow, the price goes back up, then you don't have
2 any damages --
3 MR. HUFFMAN: Judge, I --
4 THE COURT: -- if that what happens.
5 MR. HUFFMAN: I understand the theory. However,
6 this was an ongoing -- our original lawsuit is an
7 ongoing period of time -- I believe covered a period
8 of six months -- that could show the diminution in the
9 value of the value of the stock price.
10 That continued. Okay? Even during the time of
11 his violation of the order -- okay? -- there was
12 reactions in the market -- okay? -- because of his
13 postings.
14 THE COURT: What I'm trying to tell you is --
15 MR. HUFFMAN: I can also argue res ipsa loquitur.
16 THE COURT: No, you can't.
What will be made up about the Judge if/when he rules SFRX FAILED to prove damages?
That is the MO, right?
8 all false, if you prove that the guy -- even if you
9 were able to prove that the guy just sits around and
10 makes stuff up for sport --
11 MR. HUFFMAN: Right.
12 THE COURT: -- if you're able to do that, what's
13 the -- how do you get past the next couple of links
14 that you need in your chain; that is, how do you show
15 it caused any damages and how do you show that --
16 MR. HUFFMAN: Well that's for the finder of fact,
17 in deed, to make that nexus. But we show the postings
18 and you can show that --
19 THE COURT: Well isn't that me?
20 MR. HUFFMAN: It is.
21 THE COURT: Yeah.
22 MR. HUFFMAN: But we show the -- Judge, I believe
23 the evidence is there. This isn't my first rodeo.
24 THE COURT: Well I'm asking you so let's hear it.
25 MR. HUFFMAN: Okay. So he makes a posting on a
1 Tuesday -- all right? -- or a number of postings,
2 saying that there's insider trading, they're stealing
3 treasure. Because this is a treasure recovery company
4 that's out there on the east coast. Okay?
5 THE COURT: I thought he was saying that there
6 isn't any treasure.
7 MR. HUFFMAN: Exactly. Right. Or he says there
8 isn't any treasure or they're stealing it, or they're
9 giving these fraudulent and security ... and then the
10 next day there's a massive sale. Okay?
11 Or have people available who can come in and
12 testify that would have put money into the company
13 directly, but they read his postings and they did not.
14 We also have people available who said they read
15 his postings. They were shareholders of they company.
16 They sold, thus driving down the price because they
17 sold.
18 THE COURT: But when they found out it was false,
19 did they buy it back and drive the price back up?
20 MR. HUFFMAN: Well, Judge that's not really --
21 THE COURT: No, it is. You've got to understand.
22 You can't show a temporary change in price which --
23 you know, if the price goes down tomorrow because of
24 something that somebody said that was false, the rest
25 of the world realizes it's true the day after
1 tomorrow, the price goes back up, then you don't have
2 any damages --
3 MR. HUFFMAN: Judge, I --
4 THE COURT: -- if that what happens.
5 MR. HUFFMAN: I understand the theory. However,
6 this was an ongoing -- our original lawsuit is an
7 ongoing period of time -- I believe covered a period
8 of six months -- that could show the diminution in the
9 value of the value of the stock price.
10 That continued. Okay? Even during the time of
11 his violation of the order -- okay? -- there was
12 reactions in the market -- okay? -- because of his
13 postings.
14 THE COURT: What I'm trying to tell you is --
15 MR. HUFFMAN: I can also argue res ipsa loquitur.
16 THE COURT: No, you can't.
What will be made up about the Judge if/when he rules SFRX FAILED to prove damages?
That is the MO, right?
