Steve... although seeking, and following, the advice of your lawyers is certainly a good idea, in many instances they know the laws, but are not as well versed in the public relations aspect of a situation like this. Perhaps yours are, I don't know. However, there are differences in the legalities of the situation as opposed to the public relations aspect of the situation.
Many companies turn to public relation firms that are well versed in crisis management to get them through the initial and ongoing investor's concerns, as well as their customers and business partners concerns also, while the legal folks prepare the necessary legal work needed to fight the crisis in court. Fighting the crisis legally can take quite a while depending on the situation, and in most cases take much longer than the investors and/or customers have a tolerance for.
In the below link there is an example of the type of actions that can be undertaken early to mitigate the type of damage the example situation may cause. Now granted, the companies, names and situations discussed were purely fictitious, and although the example crisis is somewhat different then yours, I think there is some merit to their advice should it be applied to your situation. I think the suggested tips, specially tips 3 through 6 could be applied in your situation. How a company handles a crisis can be with them for years.
It is also acknowledged that you have been as candid as perhaps your lawyers have allowed you to be, and I for one certainly appreciate what you have publically posted, however I think many investors would agree with me in saying we would like a more complete comprehensive explanation, and some details on actions being undertaken by the legal team... to the extent possible of course, without revealing plans that might prepare the opposition to better defend any planned legal action.
You have an added advantage with respect to tip #6, in that the investors on IHub will certainly provide the feedback to gauge the effectiveness of your actions toward informing the investors of the status of the situation. Maybe more than any CEO would like at times, but none the less, immediate feedback. You can then judge the value of such feedback based on the poster.
Steve, please give some consideration to providing a more complete and comprehensive explanation regarding the ongoing situation. I for one am not sure the PPS can hold up long enough for the lawyers to finish their work, or give the OK for a press release. In my experience most lawyers would never give their approval for the release of pertinent information... because they are mostly concerned with winning the case, and not so much the PPS. A Public Crisis Management team however focuses entirely on the well being of the company (company goodwill) as an ongoing concern. In spite of what some may think, the value of the company's goodwill, although an intangible asset, is a valuable asset worth protecting.
