If this had even the slightest chance of winning, shouldn't the market capitalisation of SGH have increased today by more than just $7m. Afterall, the lawsuit is for over $1b. Over 16m shares changed hands and the price just crept up to 10.5c, the same place it was a month ago - hardly compelling. But the star evidence is SGH itself of course, as we all know how confident they were in their due diligence and from one of the articles: "In November last year, Stefan Borson, who became general counsel of the company when it was renamed Watchstone, told The Lawyer: “Given their intimate knowledge of the industry and deal experience, they were rigorous in their due diligence and we allowed them and their advisers the access to carry out a full process."
I still think that this suit is just a fishing expedition with regards to the escrow, to help put some pressure on them. I would think that at least some of the escrow money is a better-than-reasonable chance of coming to SGH. But that is an entirely separate issue to this possible lawsuit.
I applaud your bullishness, but SGH is still in the hands (and at the mercy) of the Primary Senior Lenders. Other issues, such as this, are merely background noise.
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News: SGH Watchstone Group says received correspondence from firm of solicitors for SGH, page-88
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