I am not a lawyer but a lack of proper auditing of Enron brought down Arthur Anderson. Clearly MAD is not going to bring down its auditor but that doesn't mean shareholders don't have a claim.....similarly with paid/free research by various analysts (e.g. Stockanalysis) and RBS Morgans where the analysts were holding stock while writing "research", RBS Morgans staff were on the board and they were doing all the raisings.
They state the share placements went to sophisticated investors and institutions. The people who asked me about it (i.e. it was marketed to them) must only just have scraped through the sophisticated investor criteria, and if I had bought and feel that I didn't meet those criteria I would certainly be raising it with the broker.
Better ways to get attention than ASIC, seems like many regulators they only react when it has so much public attention they have to explain why they are not doing anything.
For reference I think this is about fair value now (though I believe there are further reserves reductions to come) but I query that when the last raising was done at 31c there was not sufficient information out there to say a 30% reduction was highly likely.
FDM Price at posting:
18.0¢ Sentiment: None Disclosure: Not Held
