BOFI - 18 "Law" Firms & Counting

Do you hear the ambulance sirens? They are coming to save us.
So it has been 7 calendar days since the ‘Rehash Story’ was published in a widely circulated tabloid and we now have 18 “Law” firms and counting that have either said 1) we are investigating this; or 2) we encourage investors with losses that purchased between 4/28/16 thru 3/30/17 to contact them; or 3) we filed a class action lawsuit.

All of them stating the same dates of procurement and that investors must contact them by June 2nd if they want to be “proactive” or you can do nothing to passively participate. This means we will continue to get more of these announcements for TWO MORE MONTHS. Ughh.

The dates are very odd as the big short crash started on 10/14/2015 when it went from a closing of 35.5 to 24.8 in 1 day (-30%) and down to 20.0 in 13 trading days (-44%). So why are the dates of the class action for investors that purchased shares 6 1/2 months later? On the dates of the class action the price at closing was 20.3 on 4/28/2016, to 27.6 on 3/30/2017, or a 36% GAIN! Who lost money during this period of interest!? (ohh the shorts did). Even if you bought at the highest price in this date range, 32.57, that was JUST set on 3/1/2017. It’s still up 20% from the beginning of the lawsuit date range as of today and that is AFTER the 24% drop in the last month. All this over a federal probe investigation that BOFI says they are unaware of. I don’t get it.

The fact that all these “law” firms are chasing this with the same dates means the court judge must have set the dates? If anyone else out there understands this please let me know.
I am hoping that I’m not just deaf to the sirens they all must be hearing.


Hello fellow “passive class members”. That is what you are if you have not called one of these ambulance chaser “law firms”.

Securities Class Action Lawsuits paper written in 2014 for U.S. Chamber Institute for Legal Reform…

30% of securities class action lawsuits have no merit. Only 0.5% (that is 1/2 of 1 percent) of these lawsuits even go to trial. These 10’s of “law firms” are just joining the leader to destroy shareholder value.

All of this activity is to distract the Company and force a settlement. It seems we have laws that encourage this behavior by usually issuing settlement rewards. That paper indicates it just takes money from our pockets and gives it to the lawyers which is why I guess so many of them are popping up like weeds.

The only problem - I don’t see what “injury” we the shareholders have incurred.

I guess I’ll be calling them to find out. Though I have a feeling I’m going to get “lawyer answers” everytime and find out nothing.

Of course, if the earnings call next week has bad news, then the drop in price may result in our community’s injury. However, if that happens how is that because of supposedly wrongdoings by the company. Our rule of law has some pretty messed up games that have to be played.


It seems we have laws that encourage this behavior by usually issuing settlement rewards

That is not how it works. Parties settle only when both (or all) parties agree to. A court does not issue a “settlement reward”; I don’t believe there is even such a thing as a “settlement reward.” Its clear you don’t care for lawyers or, perhaps, the law, but you might want to learn a bit more about it before you say things that don’t even make sense…especially when you are bashing lawyers in the process apparently without knowing what you are talking about. Just sayin’.


I don’t believe there is even such a thing as a “settlement reward.”

Sorry to offend Az5speedy. The phrase was just indicating most of these securities class action suits get settled which is the reward for the lawyers to participate in the class action cases. I do understand it is a mutual agreement.

I’ve just never seen such a barrage of law firm notices about a company and am trying to understand how this typically works and see if anyone else already had been thru similar situations or knew more about the process.

My brief research showed that 1 out 3 cases have zero merit and the rest settle.

I appreciate the feedback that I shouldn’t bash lawyers though. Point taken.

The law is set up this way in order to encourage “private” attorney general actions. Instead of having to wait for a US attorney to file an enforcement action (and they do not have enough resources) the law creates incentives for private law firms to do so.

This means that such law firms, if they run their business correctly, make a good profit.

It also is a deterrent for corporations to commit acts that violate disclosure laws because they know private firms have incentive to sue, whereas the Attorney General would not have resources not sometimes incentive to be able to police and prosecute all these actions.

Whether or not this function works is debatable, but that is the intent behind the law and why it gives incentives to private law firms to police it.