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SCO Execs Dumping Stock
luigi6699 writes "According to the Salt Lake Tribune, 'SCO Group executives have sold about 119,000 shares of their company since it filed a lawsuit against IBM in March...' Their CFO started the $1.2 million sell-off just after the lawsuit."
It's class action attorneys, and not the SEC, that 'regulate' this behavior. The SEC can't have the resources to regulate every company in the U.S. but class action attorneys, because of the contingency fee structure, do have the resources to sue them.
Why do you think the corporations complain so much about class action lawyers? You don't hear them whining about the SEC.
I only say this because I always hear complaints about class action attorneys (which seems strange to me on Slashdot). They perform an essential, and very valuable public service. And yes, they make good money from it -- but only when they win.
Well, they don't only make good money when they win. They generally make good money when they settle, which they seem to do at least 99% of the time. Much of the time they settle for less than what it would cost the sued company to adequately defend the lawsuit. That seems like a shakedown. You don't read about it in the paper, but this happens all the time.
The other problem with class action litigators is that they keep a huge chunk of whatever damages are collected, rather than giving it to the people damaged. This makes their winnings a de facto penalty, rather than a repayment of damages. Penalties should be imposed by and paid to the government, in my opinion, not by and to individuals. If the class action attorneys can make so much money (and some of them have made a *lot* of money) from penalties, why shouldn't the SEC be allowed to enforce laws and extract penalties? In effect you've outsourced justice to a bunch of unprincipled vigilantes. Not good.
Milo
This was an interesting post over on Yahoo (concerning the dramatic rise in SCO share price in the closing minutes of trading):
"100 share lots, and the whole last 1o minutes (half the gain on the day) were done on less than 5000 shares. Thats less than 1/250th ( 0.4% - 4/10 of a percent) of the daily volume accounting for over HALF the closing price.
If you look at the whole runup at the end, less than 1% of the volume accounted for 80% of the closing price gain.
Someone is playing real monkey business with this stock.
I wish there was full disclosure with buying and selling like there is on political donations. It would be very interesting to see who it is that keeps manipulating the closing price."
That's Illegal.
Whats sad is when you compare it to Redhat