I believe holders have a case against the directors for false n misleading statements. Then they also failed to exercise duty of care to shareholders. I m no corporate laywer. I dont think you will get a reversal of trade but you are very likely to remove the board of directors with a class action of no confidence in the directors.
More weight will be given to those that bought on the 11 April due to the announcement.
Downside is the directors comeback to say we have exercised duty of care. At that point in time they believed that the funding is secured. Need a corporate lawyer to determine what stage would you considered the funding is secured......where all terms are met n signed or on gentlemens honour. This is very iffy. Same as business judgement. Some competent persons would exercise the right business judgement some less like in this case unbelievably stupid judgement.
I dont think you need to proof you made a lost to have a case against the board of directors. Proof of in breach of the duty of care. Incompetent to continue to be directors living of the dilution of shareholders etc etc. just get rid of them would be a good recourse. Like fluffly said a test case.
PDY Price at posting:
3.3¢ Sentiment: None Disclosure: Held
