There is a difference between not heeding a warning from a stranger and failure to verify with appropriate regulatory agencies the facts. There is no excuse for them not picking up the phone and calling the NASD to verify for sure exactly what the situation was. Stop selling shares. Make the call. If you are correct proceed with trading. Responsible trading lies with the trader. This is particularly true since the insiders knew the OS was tiny and had good reason to wonder why their account might have went from $35,000 to $250 MILLION.
REASONABLE. Hummmm, wonder how reasonable a judge would rule that. Your honor, my stock had increased in value 7142.8 times and I was sure it was due to the brilliant PR I had just put out. What else could it have been ?
With CMKI when something very simliar to this happened traders were made to cover. A 10-to-1 FS (maybe 8 to 1? been along time ago) occurred and several brokers placed shares in traders accounts early. Traders sold their stock near open and it quickly plumetted from .08 to .01 cent.
There are some differences here. With CMKI there were many sellers whereas here there are only a few at most. With CMKI the error was magnified 10 times whereas here it is being magnified 3 MILLION times. With CMKI several brokers were involved whereas here it appears that only one broker is involved.
Before you criticize a man, walk a mile in his shoes. That way, if he gets angry, he's a mile away and barefoot.
