Sorry Kherson, but I have to agree with most that there will not be much money left over from a settlement if PSN actually turns out to be a fraud.


If the special committee determines there was fraudulent accounting practices that could lead to a successful lawsuit or settlement, a CTO will be issued very shortly after their report. The company fell from 1.2 billion in market cap to 100 million in market cap. Their book value is roughly 1/10 or less of the market value that was wiped out. The lenders will get the first crack at recouping what is outstanding on their line of credit, their assets will be sold at firesale prices and the law firm will take roughly 40% of the proceeds.


It will get murky because not only are their 81,000,000 outstanding shares when the CTO was issued, but there are also many shareholders that were burned after the Q3 release and the December 27th release that sold prior to the CTO. Even if they win the lawsuit for 1 billion dollars of market cap that was wiped out, there will only be roughly 5-10 million left over to get doled out between everyone. The payout will probably end up being less than a monthly dividend, and by the time it will have already recovered and put this behind you. If it was a fraud, the lawsuit will probably get the assets of many members of senior management, but even that won't make a difference to the individual shareholder. It will justice, but that is about it.