Scumbo .... I'm not sure that a class action against Ch 11 per se is even legitimate. In this case it is a voluntary Ch 11.
For a class action to proceed investors would need to prove something like "securities fraud" committed by senior executives of the company and due to that you have lost say your life's saving. Tough ask as "securities fraud" is generally defined as material misrepresentations and omissions, fraudulent transactions, accounting irregularities, stock option backdating, and massive Ponzi schemes.
Shale has often been called a Ponzi scheme but I don't think that would hold up in court. IMO the bolded "material misrepresentation and omissions" might offer an opportunity for class action.
As an aside class action suit has already been filed against WLL under the Fair Labor Standards....
SEA Price at posting:
16.5¢ Sentiment: Hold Disclosure: Held
