ScenarioEarnings miss will be the first news. Following shortly, we'll have a news release saying ''Mark Thompson steps down as CEO of CXR''.
He knows the results already and he is anticipating the investors's questions and criticism. That's why he starts to distance himself from the company with this lawsuit. Him and Pearson are much alike. Both are ex-lawyers. Both use a similar strategy. Both let their company go to the ground. Both show no concern or remorse for shareholders. This man's character is starting to show.
Word of advice for everyone here, hedge your position. Whether you believe the bad news or not is irrelavant, the prudent thing is to hedge.