shine lawyers SHG strategic positioning, page-5

The class action against shine shouldn't be an issue for cashflow because:

1) The company has directors insurance paid up ( and costing around 400k a year according to the last FY report), which means, as long as no actual criminal charges are convicted ( not even alleged) the insurance company will cover the pay out, if it even occurs.

2) Quite possible that the class action won't even go to trial or be followed though; as the stock is >50% owned by morrision and roche who won't be participating in the class action.


So, as has been discussed in more detail on a previous thread the most likely outcomes are either no payout at all or a small insurance covered settlement in around 2 years time from now ( this is a usual time frame given when the trial is scheduled to occur) .

So no need to worry about cash flow and this class action. However, we could be easily 40m+ in the cash flow area when the ethicon trial settles. This settlement is a near certainty imho and the trial ended some month back now and the judge has had a long time to consider her verdict- but of course J&J/ethicon will settle before this happens as they do in say 99% (approx) of similar cases. J&J in their own report expect a "decision" (read settlement) in 2018, so that leaves three months at the most. I'm counting down the days