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SCO lawyers promised settlement payday (News.com)
News.com
looks into the money being made by the law firm representing SCO.
"In a recent filing with the Securities and Exchange Commission, SCO reported
that it is finalizing an agreement that would pay the law firm involved in
its intellectual-property suits 20 percent of any money gained via settlements. The company's lawyers would receive the same percentage of any funds received
through equity financings or a sale of the company while it has litigation
pending. The agreement, first detailed in The Wall Street Journal on
Thursday, also stipulates that additional payments could be made to the law
firm of $1 million and 400,000 shares of SCO's common stock."
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In other words ... Posted Nov 8, 2003 3:30 UTC (Sat) by AnswerGuy (guest, #1256) [Link] Baseless litigation and speculation is SCO's core business.That is a HUGE premium for them to pay --- particularly the part about paying 20 per cent of any equity investments or divestitures. Let's think of that from the owners' (shareholders') point of view; and from the perspective of any potential investors. This company has an expense of 20% on any investments. It sounds like that dilutes any investment I make by 20% (since my eventual return on investment has to be corresponding higher to cover those expenses). This sounds absurd as an investment unless you think the revenues from litigation provide you with enough upside potential to offset these expenses. The only other plausible reason to by their stock is for pure speculation (which is not investment).
In other words ... Posted Nov 15, 2003 18:19 UTC (Sat) by giraffedata (subscriber, #1954) [Link] It sounds like that dilutes any investment I make by 20% (since my eventual return on investment has to be corresponding higher to cover those expenses)So you've missed the basic premise of the deal. The idea is that SCO's primary worth right now is the possibility that SCO can collect royalties on Linux. The size of that possibility is directly related to the work that the lawyers do. So when you invest in SCO, the laywers' fees ARE your investment. The return is judgements and settlements they win. If you don't think they will win, you shouldn't invest. The real significance here is probably a statement about SCO's cash flow. Like the startup that pays its rent in stock, SCO is saying it can't simply retain its lawyers for cash, and is having the lawyers finance the company.
In other words ... Posted Nov 17, 2003 18:18 UTC (Mon) by speedy (guest, #16164) [Link] Seems to me, S CO is getting pretty desperate..
SCO lawyers promised settlement payday (News.com) Posted Nov 8, 2003 16:31 UTC (Sat) by alspnost (guest, #2763) [Link] When this nonsense ends, Linux will win, which is obviously good.Unfortunately, so will the lawyers, because lawyers always do. Then again, if SCO wants to bankrupt itself by giving all its remaining cash to lawyers, then who are we to stop them ;-)
SCO lawyers promised settlement payday (News.com) Posted Nov 9, 2003 17:09 UTC (Sun) by davidl (guest, #12156) [Link] What a shocker! So the lawyers are expecting a big pay day. Would you expect anything else?
Significance Posted Nov 10, 2003 3:40 UTC (Mon) by dark (subscriber, #8483) [Link] Some of the analysts have been claiming that the lawyers were on contingency, thus "proving" that there was something to the case. This deal shows that that's not true.
Significance Posted Nov 15, 2003 18:11 UTC (Sat) by giraffedata (subscriber, #1954) [Link] I must be misreading something, then. I think the article specifically says the lawyers are working on contingency, and less than the usual 1/3 too.Contingency means a lawyer gets paid a per centage of the recovery he generates, as opposed to being paid for the amount of work he does.
SCO lawyers - Playing Las Vegus Posted Nov 9, 2003 21:04 UTC (Sun) by kb8rln (guest, #16325) [Link] Sound Like Las Vegas will some one give me the odds I bet on IBM and RedHat. With the return on money down, looks like over 50 to one.
SCO lawyers promised settlement payday (News.com) Posted Nov 9, 2003 21:08 UTC (Sun) by walterbyrd (guest, #11620) [Link] Does this mean that scox lawyers get $10 million from that $50 million PIPE financing deal?
SCO lawyers promised settlement payday (News.com) Posted Nov 9, 2003 22:57 UTC (Sun) by vblum (guest, #1151) [Link] Grin, if that is true, the lawyers must have threatened to walk out on their client, and DMcBand friends were forced to play a pretty bitter card to keep them in the game. Irrespectively, the game should be over next month unless they show their complaint by way
SCO lawyers promised settlement payday (News.com) Posted Nov 10, 2003 12:45 UTC (Mon) by the_JinX (guest, #3953) [Link] ..and 20% of $99,- is a clean $19.80 for the lawyers..
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