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This is probably not the appropriate forum for debating the merits of securities litigation, but since the issue has come up...

In the first place, does anybody really think that correspondence from unhappy shareholders has any impact whatsoever on management. If, as the former employees claim, the company operates as a patriarchy with "daddy" knowing all of the answers, why would "daddy" care about investors who have lost money.

As for the assertion, "The only people who would profit from a suit against EAI right now are the lawyers. Some companies choose to settle out of court just to avoid the expense and embarassment of defending a lawsuit. The lawyers walk away with a third of that pie and leave each of the shareholders with a few crumbs... far from the amounts they lost. That's why so many lawfirms specialize in these kinds of suits -- they are quite lucrative... for the lawyers." That is not quite accurate. First of all, class action fees are controlled by the court, I have yet to be involved in a case where counsel got "a third of the pie." Second, the real money in the securities business doesn't go to the litigators. It goes to the underwriters and their counsel who get huge fees tied to the size of the deal. Think about the fees being paid in the Sprint/MCI merger.
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