8.21.2007

A deeply philosophical legal question

I could ask Old Zeke about this if he'd ever attended class instead of playing poker through law school:

Can a short-seller join a class-action shareholder suit?

Lerach Files Class Action Suit Against Countrywide Financial Corporation:
[Lerach Coughlin] today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Countrywide Financial Corporation common stock during the period between January 31, 2006 and August 9, 2007.
Hey, I was a purchaser of CFC during that period... FOUR TIMES!!! I bought at $41 and $39 in February, at $37 in June and at $25 in August. And all because that big meany (well, OK, little orange meany) Angelo Mozilo kept saying everything was OK.

It doesn't matter that my purchases were all short covers, does it? I'm still out the additional money I should have made if I'd left all those shorts open.

By the way, yes, it is THAT Lerach, the strike suit king who is still under a cloud of suspicion for activities at his prior (indicted) firm, Milberg Weiss.

No comments:

Ric Edelman is wrong on Roth 401(k)s and dollar-cost-averaging withdrawals

I'm a huge Ric Edelman fan. I'm a regular listener of his radio show and believe he's made a huge positive contribution to the f...