my issue is they want to charge a fixed fee for the case, but...

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24/06/16

22:51

Post #: 18119845
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Originally posted by aussieman69 ↑

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.

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my issue is they want to charge a fixed fee for the case, but then want to distribute funds based on how many shares you own. Can't have it both ways. Looks like small holders are paying disproportionate amount compared to big holders.

DSH Price at posting: 35.5¢ Sentiment: None Disclosure: Held
4 Upvote

0 Great analysis

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my issue is they want to charge a fixed fee for the case, but...

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Mesoblast resubmits US FDA application for approval of Ryoncil in children with graft vs host disease; shares dip -4%

Orthocell shares jump on record revenues from sales of collagen bone repair devices globally

Patagonia looks to raise $2.15M for South American exploration and development

Spartan sniffs 126g/t gold ahead of resource upgrades at WA's Dalgaranga

Scandium a priority metal for Sunrise as it plans feasibility update at Syerston

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