birgit posted an update 1 year ago
The Firm is an leader in the industry in obtaining relief for investors impacted by corporate securities fraud. The Question always arises why would they do this, how and who has the motive:
Frequently, public companies misrepresent their finances to artificially inflate the price tag on their securities. Often this starts off with a desire to satisfy a selected quarterly expectations, taking sales from future quarters to inflate meet expectations to hold not just their jobs nevertheless the shares artificially inflated. Many will manufacture revenue by booking revenue upon shipment, but to purchasers who cannot pay unless they resell the shipment or often to customers, en masse, who never ordered it to begin with. Often this really is as well as a side letter agreement – “since its on the dock, there’s a commission inside it if you find a customer.” Only, the recipient doesn’t realize he was simply 1 of 1000, who received this unordered shipment. In larger cases, usually the banks are participating.
Banks can make cash flows from financing activities into income from operating activities, and then sell on it to companies for any hefty commission, It’s illegal but very complex to understand, not to mention profitable. Worse the banks will sell you bonds while buying Credit Default Swaps in it, thereby profiting from them upon default. They have this as a result of a science.
Some have spun off lending groups to prey on cash strapped firms that have realized it’s more profitable to be sure a business fails quickly, thus getting their prepayment penalties and make whole payments in a period of a year or less, as opposed to waiting Fifteen years to collect their interest.
Others, whose software was to be launched by the certain date, will still ship the program, albeit blank or code fraught with issues will mandate that only “their employees may handle the installation,” some achieve this since the software isn’t ready but they sought to satisfy the Q deadline as they actually will book income upon shipment otherwise the stock (and they’ll suffer). Just like paying bank cards with an increase of bank cards, the facts eventually emerge, it could take an informant, an ancient employee or possibly a Client requesting the Firm to investigate something they noticed with regards to a company or even the SEC, however it surfaces, eventually.
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