The Firm can be an industry leader in obtaining relief for investors suffering from corporate securities fraud. The Question always arises why do they really do this, how and that has the motive:
Frequently, public companies misrepresent their financial condition to artificially inflate the cost of their securities. Often this starts off with a desire to satisfy a selected quarterly expectations, taking sales from future quarters to inflate meet expectations to keep not only their jobs but 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 to begin with. Often this can be accompanied by a side letter agreement – “since its on the dock, there’s a commission inside if you realise a buyer.” Only, the recipient doesn’t realize he only agreed to be 1 of 1000, who received this unordered shipment. In larger cases, usually banks could happen.
Banks are able to turn cash flows from financing activities into cash flow from operating activities, and sell it to companies for a hefty commission, It’s illegal but very complex to find out, as well as profitable. Worse banks will sell you bonds while buying Credit Default Swaps with them, thereby profiting from them upon default. They have this as a result of a science.
Some have spun off lending groups to prey on cash strapped companies which have realized it really is more profitable to make sure a firm fails quickly, thus getting their prepayment penalties making whole payments in a period of per year or fewer, as opposed to waiting 15 years to recover their interest.
Others, whose software would have been to be launched by the certain date, will still ship the program, albeit blank or code fraught with issues will mandate that only “their employees may set it up,” some do so as the software isn’t ready nevertheless they sought to satisfy the Q deadline as they actually will book income upon shipment otherwise the stock (and they will suffer). Just like paying bank cards with more bank cards, the reality eventually emerge, it might take an informant, an early employee or possibly a Client requesting the Firm to research something they noticed with regards to a company or the SEC, but it surfaces, eventually.
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