If it was a secret plan, how did it impact the company's finances, and escape the notice of the CEO, resulting in bankruptcy?. Investors are typically not allowed to book expenses or make deals unless they are officers of the corporation. And even then, somebody (CFO, CEO, Controller) looks at the books once in a while.
While formulating their aggressive strategy, the lawsuit stated, the investors misled businessman Paul Edward Hindelang, a founder of Pacific Coin, about their intentions. Instead of telling him about their ambitious plans for a public offering, it said, they promised to follow his slow-growth strategy..
So what!!! Hostile takeover, hostile intentions. Did they use the company's money to pay the pre-IPO expenses? How did Hindelang miss this drain such that the compant went bankrupt?
"Defendants steered Pacific Coin from one disastrous transaction to another -- solely for defendants' benefit," the lawsuit said. "In so doing, defendants actively misrepresented to, and concealed information from, Pacific Coin Management to prevent it from blocking these ruinous transactions.".
So Hindelang or the CEO was FORCED to make bad decisions...You would think an old pothead would be more paranoid--and is a jailbird ever honest????
Love those LA jurers. How many SAG idiots in the box?