Attorneys Only: Answer this Question
A fortune 500 CFO admits to having deliberately treated $4 billion in operating expenses as assets, thereby allowing the corporation to show profits instead of losses, The auditor never detected this. The corps stock dropped 95% and bond covenants related to billions in debt are breached. At its peak price last year, the CFO sold stock acquired through stock options for $15 million, generating a $10 million gain.
What provision(s) of the securities law will probably be the basis for a class-action lawsuit by stockholders?
2 Answers from Attorneys
I am the right attorney to address this issue. There would be nearly a dozen separate causes of action, both securities specific, and others. I currently have several cases this large pending. My law firm focuses on securities fraud, and specifically investment losses due to material omissions and misrepresentations, and pursues such matters in both litigation and arbitration. Please send me an email with your contact info and let me know when you will be available for a discussion. You may check out my website for more info.
Daniel Bakondi, Esq.
The Law Office of Daniel Bakondi, APLC
870 Market Street, Suite 1161
San Francisco CA 94102
IMPORTANT NOTICE: This communication may contain confidential information, privileged information, or attorney work product. If you are not the intended recipient or received this message in error, any use or distribution of this message is strictly prohibited and unlawful. Please notify the sender immediately, and delete this message. No attorney-client nor confidential relationship is created through this communication. Nothing communicated or provided constitutes legal advice nor a legal opinion unless it so specifies and written agreement for attorney services has been entered into. Attorney licensed in California only. Your issue may be time sensitive and may result in loss of rights if you do not act in time. Thank you.
We don't answer law-school type hypothetical questions. Further, I have no idea how operating expenses could be treated as assets, any more than sales could be treated as inventory. They are unrelated accounting concepts, not susceptible to the type of fraudulent mistreatment you propose.
Related Questions & Answers
What is the importance of form interrogatories 17.1? How is form interrogatories... Asked 8/02/11, 11:27 am in United States California Securities Law
To whom do I address a complaint regarding distribution of settlements for a... Asked 6/30/11, 6:41 am in United States California Securities Law
Where can we complain about a determination by Rust Consulting re: Juniper... Asked 6/29/11, 12:26 pm in United States California Securities Law