The Ambulance Chasers Are Coming?, page-22

The terms of the class action are not yet known, but I understand that class actions are often on an 'opt-out' basis. So if SGH bring the claim, then we might all become participants unless we expressly exclude ourselves (i.e. if we think we have a better claim to bring).

I can't think of any legal basis on restricting the class action to retail investors. Institutions participated in the SGH class action - they have rights just as retail investors, and if VOC was misleading or deceptive or breached their continuous disclosure obligations (as alleged), they are just as entitled to compensation.

At this stage, SGH is just trying to ramp up discontent and get expressions of interest. I wouldn't waste your time. The change of CFO, understanding the integration of so many businesses, and internal troubles VOC was having is probably sufficient explanation for the accounting mistake. SGH don't even appear to have their timeline correct - they are missing the fact there were two downgrades, and VOC share price was already plummeting. Plus, the share price fall then caused some PE bidders, which pushed the share price above where it had been.

VOC is not insolvent like SGH. The share price still has a chance of recovery if management is given some breathing space to get stuff done. IF you want to recover your losses, best thing to do is probably to sit still and hold tight. If you're really that bored, maybe try lobbying the government for some change in relation to CVC pricing.

We bought into a company that was clearly very risky, and are currently paying the price. Just put this one aside and not look at it for a year, maybe go have a look at MYX or GXL if you want another 'fallen angel', or just play it safe and don't buy companies showing signs of distress.