Quote:It is nonsense and disinformation to say that there is ANY advantage for the judge to delay the decision -- except, of course, for the shorts and for the Rosen Firm
This is false for reasons I state below.
Quote:A possible financial benefit for CTIX from the final ruling is that the judge can award CTIX their legal fees.
You do understand that there will be no financial benefit to CTIX in either case, correct? They will be awarded their legal fees which causes them to break even. As their payment to Ashcroft is in the form of options currently worth $0 there are essentially no legal fees. Rule 11 sanctions allow CTIX to recoup their legal fees and serve to punish Rosen.
Unexcercised out-of-the-money options are the only legal fees CTIX has paid. As such, the legal fees portion of this whole fiasco has had no impact on CTIX. It's not as if we paid $1M to Ashcroft and now are short on cash to advance trials. We gave them an IOU that never needs to be paid out until the stock is over $1.70.
Quote:It is in no way an advantage for the CTIX stock price to stay down here awaiting a decision, because the Rosen Firm could appeal damages by saying that the stock price's failure to recover had nothing to do with them.
This is true, as you say, both for a civil damages suit and as it pertains to Rule 11 sanctions. This is why it is advantageous (if you want to hurt Rosen) for a delayed ruling in order to get a higher share price.
Quote:wants to see the ruling delayed, if they were long the stock.
I argued that if the ruling is delayed until the stock price appreciates greatly, Rosen will suffer more the higher the price goes. If I were working for Rosen I would be hoping for the decision to come tomorrow while CTIX legal fees are valued near $0. I’m not though and I’d like to see Rosen get a bloody nose from this. That is accomplished by valuing the options at a higher price based upon a higher stock price (which will come later this year).
So once again, I am here calling for stronger sanctions against Rosen and you're calling it nonsense and disinformation. Who is long the stock again?
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All content of my posts is my opinion and speculation. Do not treat anything I say as fact or actionable investment advice. I participate to challenge my investment thesis from any angle possible. Please do your own due diligence.
Current Positions:
Long CTIX.
Current Positions:
Long CTIX.
