Can any experienced legal eagle please help shed a little light on what the financial risk/downside to Venus may be if SPX involvement in this court case was to be thrown out by a registrar and/or they failed to directly implicate SPX in any wrong-doing in a Supreme Court action? On top of likely high legal costs, could Venus be required to pay for SPX’s lawyers and any other damages as well? Would Venus directors be exposed to SPX shareholders launching a class action for the $50 million drop in capitalisation since disclosure of the writ? Would a standard directors and officers insurance policy indemnify directors personal liabilities if they were to be judged as having launched a (legally) frivolous court action?
Last question, If everything were to go pear shaped, and if Venus couldn’t afford to pay any damages awarded, would SPX (or any class action people) then become the senior creditors and get first bite at the carcass?
It should be clear to us all that the only people not financially exposed over the coning months in this dispute are those lawyers
VMC Price at posting:
17.5¢ Sentiment: None Disclosure: Not Held
