Quote:
Originally Posted by CuriousGeorge
If you look at the market cap of CLCT, the amount they have in reserve to pay out for claims like these, and then do a rough calculation as to their legitimate exposure, I suspect Sloan is having a very hard time sleeping at night.
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Yup. It's ugly. Now of course they probably have a claim over against whoever submitted these fraudulent cards, be it Brent or Gary, for breach of the submission agreement and maybe fraud, but that's probably not much consolation.
They also face the possibility of securities fraud claims, I suppose, if they have reason to know their reserve is materially insufficient.