It's legal to be incompetent, however certainly not to be fraudulent nor negligent.
I personally think that the company officer(s) are acting illegally (ie. in a fraudulent manner), however that is an opinion.
As Alan Bond showed, a defense based upon incompetence can work to a degree (he ended up serving 4 of 7 years for ransacking Bell Resources).
Have a read of Enron's history - similar to CVI's on a much larger scale. Lay was telling people that Enron would rule the market as the directors and insiders unloaded their stock. The movie "The Smartest Guys in the Room" was also an excellent doco on the company.
CVI Price at posting:
0.9¢ Sentiment: LT Sell Disclosure: Not Held