Again: re-stating earnings is not all that uncommo
Post# of 153818
(Total Views: 484)
Posted On: 08/09/2022 12:45:29 PM
Again: re-stating earnings is not all that uncommon, but NOT re-stating them when there is an accounting error could trigger legal action against the company.
It's a non-issue. It means that the management is getting everything in order, and they fixed a problem they discovered. If anything, it should reassure prospective partners that the company is making sure everything is squeaky clean.
The "lawsuit" is also a big nothing. There is no basis for suing the company for fixing an accounting problem. It is very common to release news outside of market hours so there is not a halt and subsequent knee-jerk selling in a stock. Orderly markets, ya know?
Some of these law firms have "greenmail" as their business model. File groundless lawsuits, find some patsy to be lead plaintiff, and then the company pays them a few hundred thousand to go away. The patsy gets a cut of the settlement --
UNLESS it goes to trial and the greenmail law firm loses. Then, the patsy is on the hook for part of any damages/legal fees by the attacked company.
I've seen these greenmail suits suddenly lose a lead plaintiff or two when the case actually advanced to trial -- they didn't want to have a potentially huge loss for being involved in a dubious case.
It's a non-issue. It means that the management is getting everything in order, and they fixed a problem they discovered. If anything, it should reassure prospective partners that the company is making sure everything is squeaky clean.
The "lawsuit" is also a big nothing. There is no basis for suing the company for fixing an accounting problem. It is very common to release news outside of market hours so there is not a halt and subsequent knee-jerk selling in a stock. Orderly markets, ya know?
Some of these law firms have "greenmail" as their business model. File groundless lawsuits, find some patsy to be lead plaintiff, and then the company pays them a few hundred thousand to go away. The patsy gets a cut of the settlement --
UNLESS it goes to trial and the greenmail law firm loses. Then, the patsy is on the hook for part of any damages/legal fees by the attacked company.
I've seen these greenmail suits suddenly lose a lead plaintiff or two when the case actually advanced to trial -- they didn't want to have a potentially huge loss for being involved in a dubious case.
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