nery posted an update 10 months ago
The Firm is an industry leader in obtaining relief for investors suffering from corporate securities fraud. The Question always arises why would they make this happen, how and who may have the motive:
Frequently, public companies misrepresent their finances to artificially inflate the price of their securities. Often this starts off with a need to fulfill a specific quarterly expectations, taking sales from future quarters to inflate meet expectations to hold not just their jobs but the shares artificially inflated. Many 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 firstly. Often this can be accompanied by a side letter agreement – “since its on your own dock, there’s a commission inside if you find a purchaser.” Only, the recipient doesn’t realize he was just 1 of 1000, who received this unordered shipment. In larger cases, frequently the banks are involved.
Banks can turn cash flows from financing activities into cash flow from operating activities, then sell it to companies for any hefty commission, It’s illegal but very complex to find out, not to mention profitable. Worse the banks will sell you bonds while buying Credit Default Swaps on them, thereby making the most of them upon default. They have this as a result of a science.
Some have spun off lending groups to go after cash strapped companies which have realized it can be more profitable to ensure a company fails quickly, thus getting their prepayment penalties and make whole payments in a period of 12 months or less, as opposed to waiting 15 years to recover their interest.
Others, whose software would have been to be launched by way of a certain date, will still ship the application, albeit blank or code fraught with issues will mandate that only “their employees may handle the installation,” some achieve this since the software isn’t ready nevertheless they sought to fulfill the Q deadline while they actually will book income upon shipment otherwise the stock (and they can suffer). Just like paying credit cards with increased credit cards, the reality eventually turn out, it may take an informant, a former employee or even a Client requesting the Firm to analyze something they noticed in regards to a company or SEC, nonetheless it surfaces, eventually.
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