Longford Energy Inc V.LFD

DRILLING OR LAWSUITS????

[taxdemicco]

Hello Everyone:

LFD has a choice between:

a) Drilling

or,

b) Facing a large number of lawsuits


LFD made serious representations to investors of drilling the Chia property.   The managment raised $ 50 million which was used to drill Chia through studies and equipment.

LFD promised drilling on multiple occasions, it is on their website, in news releases, etc...

Failure to drill is not wasting investors funds, it is wasting management funds as investors will bring large lawsuits for funds lost plus damages.    The directors of LFD can be held personnally liable for misrepresentation, hence the likes of Ahmed, Stan Bharta and others whom are very solvable will not apreciate these measures in court.

For this reason, I expect them to drill as they have no choice.     Either they put up the financing themselves, some $20 million or, they face lawsuits totalling $ 50 million to $ 100 million from shareholders, which they will have to pay out of pocket.

Plus they lose PSC contract.

I don't think management is that foolish especially when dealing with the likes of a SOROS whom can easily start a class action suit.

For these reasons, I expect managment to drill and to finance the project themselves.

JMHO

[maysteeler23]

The share price is ridiculous!! Management has to get their act together