I hope that these guys fight back like CTIX manage
Post# of 1460
(Total Views: 1610)
Posted On: 05/26/2017 2:43:28 PM
I hope that these guys fight back like CTIX management did.
The only way this greenmail business model is going to stop is if companies decide it's worth it to pay the legal fees and fight back. It has to be made unprofitable for these law firms. It would be extremely difficult to draft legislation that would screen out the bogus cases but allow the (very few) real cases to be pursued.
Of course if the SEC did its job, shareholders would have no incentive to sue companies because the SEC would have cracked down on them. And because of that, the law firms wouldn't be able to sue, because any actual problem would have been taken care of.
The only way this greenmail business model is going to stop is if companies decide it's worth it to pay the legal fees and fight back. It has to be made unprofitable for these law firms. It would be extremely difficult to draft legislation that would screen out the bogus cases but allow the (very few) real cases to be pursued.
Of course if the SEC did its job, shareholders would have no incentive to sue companies because the SEC would have cracked down on them. And because of that, the law firms wouldn't be able to sue, because any actual problem would have been taken care of.
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