Re:Under Fire, Theranos CEO Stifled Bad News
by GavinMcG on Monday July 11, 2016 @12:05AM
(#12068816)
I would assume it can use investor funds. Presumably, if a defense is a rational choice compared to a settlement, the use of investor funds helps avoid the loss of even more investor funds.
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Re:Under Fire, Theranos CEO Stifled Bad News
by tuna-piano on Monday July 11, 2016 @12:25AM
(#12068885)
I'm referring to the open criminal investigations against Theranos: http://www.bloomberg.com/news/articles/2016-04-18/theranos-i...
Is this investor money being used to defend against a suit about defrauding investors?
Re:Under Fire, Theranos CEO Stifled Bad News
by otl1248 on Monday July 11, 2016 @02:37AM
(#12069254)
Companies frequently defend themselves against shareholder lawsuits, and naturally that money would otherwise provide value for the shareholders. Also, if the SEC fines them the (current) investors will basically be punished!
Re:Under Fire, Theranos CEO Stifled Bad News
by wildmusings on Monday July 11, 2016 @02:42AM
(#12069273)
Oh fascinating, I hadn't thought about this before. So if the plaintiffs win a shareholder lawsuit, they're winning money at the expense of all of the other shareholders? And what about a class-action by all of the shareholders (is that even possible)? That'd just be the shareholders suing themselves? I guess that'd just be a forced liquidation/dividend in effect, right?