Guys, I think you should consider the following scenarios:
a) Case lost - No win
Under the conditions of the legal firm's cost agreement, no win means nothing to pay upfront by shareholders and the loss is borne by litigation funder later. Shareholders have no fee to pay later.
b) Case won
The court will either decide or rubber stamp a settlement amount. The defendant will have to pay some % of the winning party's legal costs. The settlement amount will first cover the litigation funder's costs then the law firms charges and disbursements. The gap left over at the end will be split amongst participating shareholders.
The unknown is clearly whether the case will be successful or not and what gap is available for distribution to participating shareholders.
Clearly if you don't participate in the class action you won't be able to receive anything. What number of shares you held at time of the company collapsing will be used to calculate the entitlement after a successful case matter.
Ive tried to keep the above simplistic.
DSH Price at posting:
35.5¢ Sentiment: None Disclosure: Held
