Jim - thought you may be interested in this, covering the legal status of due diligence under both common law and the corporations act. In a nutshell, if directors can evidence adequate care when undertaking a transaction, they have a valid defence.
Incidentally HIH Insurance takes the award for biggest loser, with a $5.3billion loss early this century - time was served by several parties.
I can't agree with you that SGH knowingly misled the market; I think they underestimated the difficulties when making such a large takeover and stupidly did not provide for adequate working capital associated with this.
As an investor, I was equally stupid in 'hoping for the best'- however imho the risks have been taken into the price for some months now and SGH is shaping up as an excellent recovery prospect.
SGH Price at posting:
32.0¢ Sentiment: Buy Disclosure: Held
