RE:RE:RE:Letter to Interim CEOPedro, thank you very much for your wishes of luck, but I think all Krn shareholders need a real big good luck wish.
The significance of the solicitor / client costs award from a very respected senior justice may prove very problematic in future lawsuits brought against Krn due to conduct perception.
"Solicitor-client costs are generally awarded only when there has been reprehensible, scandalous or outrageous conduct by a party ... They are only awarded in rare and exceptional circumstances and may be available if misconduct occurs in the course of litigation" There are currently 5 Krn lawsuits on the books that I am aware of, including
- Matson / Szabo v Karnalyte
- Wheatley v Karnalyte
- Ma v Karnalyte
- Karnalyte v Phinney
- Karnalyte v Brown
I have heard rumors of 3 others coming down the pipeline in the next few months.
When considering the initial Originating Application brought against shareholders by Karnalyte cost upwards of $1.5 million, what will be left of our treasury once potentially 8 lawsuits make their way through the court system?
With the latest lawsuit filed against Krn by Matson / Szabo also filed against GSFC, does GSFC cover their own legal costs or use the Krn treasury to defend themselves?
With less than $5 million likely to be reported in the third week of March 2021 as cash remaining at December 31, 2020, can the treasury survive all of these lawsuits when the dust settles.
It would be a safe bet to assume the founder will see a huge pay day from Karnalyte, as I have not seen anything reported to suggest he has been able to find any executive position after he was falsely crucfied publicly by Karnalyte in May 2018
"the litigation was conducted as a “weapon” in order to ensure that Mr. Phinney (and the other Respondents) were put to as much expense and hardship as possible, in a situation where the allegations against them were serious, as well as personally and professionally damaging." Maybe shareholders not named GSFC / CSG should be given the opportunity to vote on how Krn should compensate the founder for their unforgiveable May 2018 character assassination -
My vote would be to see 12 million shares go to him prior to the next AGM, as it would not surprise me to see a couple million dollars awarded to him through the court process anyways.
In the best interests of all involved including all Karnalyte shareholders, I hope many of these lawsuits can be settled over a coffee with current management in the best interests of shareholder preservation, instead of several more years of very expensive litigation that will continue to erode the remaining treasury until it is gone.