Ever feel like you were the only one that thought it a bit odd when Defendants argue that Plaintiffs filed their securities class action too late because of all the red flags and, well, bad stuff that they themselves did? Fear not, as you now have Judge Richard Owen (S.D.N.Y.) on your side, at least on this point. When the executives of former penny-stock Pronetlink (sorry no link, this worthless company is long gone), one of whom is currently serving a 4 year stint in the slammer for his role in the pump-and-dump, tried it, Judge Owen remarked that Defendants’ strategy is just “a bizarre reverse self-serving assertion designed to exculpate themselves.”
Not too hard to guess how this one ends, is it? Motions to dismiss denied in full.
You can read In re Pronetlink, issued December 9, 2005, at 2005 U.S. Dist. LEXIS 32024.
Nugget: “PNL's initial public offering was not a success. Despite selling 7.5 million shares through private placements, it brought in only $ 150,000.”