by, 12-02-2015 at 11:17 AM (5206 نمایش ها)
The Firm can be an leader in the industry in obtaining relief for investors impacted by corporate securities fraud. The Question always arises why are they going to do that, how and who may have the motive:
Frequently, public companies misrepresent their financial condition to artificially inflate the price of their securities. Often this begins with a need to fulfill a selected quarterly expectations, taking sales from future quarters to inflate meet expectations to help keep not just their jobs however the shares artificially inflated. Some will manufacture revenue by booking revenue upon shipment, but to purchasers who cannot pay unless they resell the shipment or often to customers, en masse, who never ordered it in the first place. Often that is followed by a side letter agreement - “since its on your dock, there's a commission in it if you find a buyer." Only, the recipient doesn't realize he was only 1 of 1000, who received this unordered shipment. In larger cases, usually the banks are involved.
Banks can turn cash flows from financing activities into earnings from operating activities, and then sell on it to companies for the hefty commission, It's illegal but very complex to understand, let alone profitable. Worse the banks will sell you bonds while buying Credit Default Swaps to them, thereby profiting from them upon default. They have this down to a science.
Some have spun off lending groups to victimize cash strapped firms that have realized it really is more profitable to be sure a business fails quickly, thus getting their prepayment penalties and make whole payments a duration of annually or fewer, instead of waiting Fifteen years to gather their interest.
Others, whose software ended up being to be launched by the certain date, will still ship the software program, albeit blank or code fraught with issues will mandate that only “their employees may set it up," some do this as the software isn't ready but they sought to fulfill the Q deadline as they actually will book income upon shipment otherwise the stock (and they'll suffer). Just like paying cards with additional cards, the truth eventually emerge, it may take an informant, an old employee or a Client requesting the Firm to evaluate something they noticed of a company or SEC, but it surfaces, eventually.
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