RE:RE:RE:RE:CANDYLANDThankyou Malpeque2 for your comments.
I agree with you that this is a very fuked up deal. I don't have enough experience to say it is the worst ever. Judge Groves more or less said that.
And you said in the case you were familiar with the settlement was for $ 5 m, and the class action reps do it for 30-35% , so in that case they would have earned less than $ 2 m. I was under the impression it would cost much more than that. Nevertheless the shareholders of Core who would be in on this possible action , could never fund $ 2 m, unless Washer and Piggott were in on it. Let's see, they each have more than 10 million shares, I think it is, so if the action was entered into by say 50 million shares (which I think would be about right) , and it was for as little as $25 m , which if successful would give everyone 50 cents a share. Or somewhere around $ 5 m for Washer and Piggott. Can Piggott be in a class action against a company he is a director of? Maybe he would step down first.
And maybe someone would take it on contingency, if they were confident they would be able to get the money if they won. And that would mean from Core's insurance. Core ain't got nothin', and the Directors personally seems like 'blood from a stone'. Do you think there is any way to get access to Core's insurance policy? If it is $ 10 m, and the action 'won' that, the lawyers take $3.5 m, leaving about 13 cents a share for shareholders. Better than nothing. If it is much less than $ 10 m , or if the 'win' was for much less, it gets abit marginal.
And for Washer and Piggott it would still make sense to fund it ,if it could be done for $2 m, even if the payout was 25 cents a share, or a 'win' of $ 12.5 m (again assuming 50 m shares in) . And perhaps there could be some kind of arrangement that the other shareholders would fund their share of the action if the action was successful. Just to keep it fair.
I think that what the regulators might or might not do, in Canada, (I think it's forget about the Aussies) in the next while could have a big bearing on a class actions chances. It is so obvious that so much wrong doing has occured, but a simple statement by an official charged with making a determination, probably holds more weight than the vast amount of words us shareholders have written about everything that is wrong here.
Anyway looks like this sorry tale is far from over. Regardless of the outcome in the next while, the fallout is set to continue for a lot longer.