RE:RE:RE:Institutional investors will sell IMO. Low % of holdings...I think CMS has made a decision and Casey has priced it - $0.
CMS will have been on the phone with VMD and worked all this out a long time ago. Do you think last year's record revenues were recorded with defects going back 6 years ? Do you think CMS was reimbursing last year without an agreement of what was eligible?
Accountants tend not to allow "contingent liabilities" on the balance sheet because the lawyers will always take their presence as an admission of guilt.
LSFCA has already noted that the exposure today is $11 million. My guess is all sides will do a small "mea culpa" and agree to put it down the middle - $3 million good faith payment. I dont see this hanging for long.
I think today you saw the issue priced as an adjustment to market cap - 29 / 400 million or about 8%. Give it a few days crying time and then it will go back to 11 / 400 or 3% - say 35 cents off.