The Firm is surely an industry leader in obtaining relief for investors impacted by corporate securities fraud. The Question always arises why would they do that, how and who’s the motive:
Frequently, public companies misrepresent their finances to artificially inflate the price of their securities. Often this begins with a wish to satisfy a particular quarterly expectations, taking sales from future quarters to inflate meet expectations to keep not simply 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 to start with. Often this really is accompanied by a side letter agreement – “since its on your dock, there’s a commission in it if you discover an individual.” Only, the recipient doesn’t realize he was only 1 of 1000, who received this unordered shipment. In larger cases, most often banking institutions could happen.
Banks are able to turn cash flows from financing activities into earnings from operating activities, then sell it to companies for any hefty commission, It’s illegal but very complex to determine, let alone profitable. Worse banking institutions will sell you bonds while buying Credit Default Swaps on them, thereby making the most of them upon default. They have this right down to a science.
Some have spun off lending groups to go after cash strapped companies that have realized it’s more profitable to ensure a company fails quickly, thus getting their prepayment penalties making whole payments in a period of annually or less, rather than waiting 20 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 this because the software isn’t ready but they sought to satisfy the Q deadline since they actually will book income upon shipment otherwise the stock (and they will suffer). Just like paying charge cards with more charge cards, the facts eventually appear, it might take an informant, an ancient employee or possibly a Client requesting the Firm to analyze something they noticed in regards to a company or the SEC, but it surfaces, eventually.
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