RE: Restatements They have violated the securities laws as there was misrepresentation in financial statements. This has to be a serious offense. ASC should send in their staff & get to the bottom. They have to set an example for the integrity of the markets. PSN has mislead the investors & regulators. There has been massive destruction of wealth. There has to be quite a few pops & moms in addition to lot of retail investors who got trapped because of dividend & lost their saving. The sad thing is that there has been & continues to be lot of negligence. Some of the institution who have better information & got out earlier & stayed out. Some even shorted the stock. There is a chance that the law suit may now include the regulators, auditors, the board & the lending bank. If the bank had done proper DD & monitored the AR they would not have increased the LOC & even called in the loan much earlier. The chances are that the bank will call in the loan now. How can they increase the credit facility to $100m without taking a look at huge AR. Some investors would have implied that if the bank is giving them more money then everything is fine. Verification of AR is easy & does not take too long. The company will lose some more customers because of their accounting practices. There is sufficient material for the lawyers to make a successful case against everyone. Most of them will have insurance so some of the payout will come from their insurances. It is going to cover only a small portion of the losses incurred for most investors. Because of misrepresentation some large companies may not want to deal with this company & auditors fees & insurance premiums are going to multiply, because of a very valid law suit there will be lot of legal expenses & due to lack of trust in the management this company may end up under receivership.