RE:FACT: COHODES LOST MONEY IN HCG TRADEWBuffett1 wrote: Look at the stock chart. If he covered his short position at $40 or more, he lost money in his trade. The interest he pays on borrowing the stock is at least 10% pa.
If he didn't lose money i.e. no damages, then the lawsuit is stupid and will go nowhere. Either way, Cohodes made a mistake with this lawsuit. Now the new HCG management will dig up more dirt on Cohodes and gang. LOL
Comment from a securities lawyer I had dinner with this evening: "You can't sue on theoretical losses on a short (in Canada or the US)." Cohodes could have, however, had a short box trade and lost money on the long tranche but that doesn't sound like it was the case. I am working on getting a copy of his 21 page statement of claim. Obviously, Cohodes isn't blabbing about how on earth he lost money on twitter so not sure he wants the information out there. Hopefully BNN can get a copy of it too since they did all those interviews where he thumped his chest saying "I'm still short Home Capital" ... he may have been short 10 shares (as in the JP healthcare conference he announced he is a MDXG shareholder when he also said its the short of the century). Something certainly smells bad!