Re: [CANSLIM] Lawsuits that settle for "undisclosed amounts"

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] Lawsuits that settle for "undisclosed amounts"
Date: Fri, 15 Nov 2002 21:14:47 -0500

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Try going thru the latest and next 10Q / 10K report carefully. Compare the
financials, as well as read carefully all footnotes and fine print. It must
show somewhere since it is an actual cash transaction (unless done for
stock, which should also show). You likely will have to do some digging. It
might show up just as a general "litigation cost", which would include the
legal expenses.  Part of the settlement may have been covered by insurance,
in which case that part likely will not show at all. Also part might have
come from personal wallets, or insurance policies, and would also not show.

You could also try going back to the first 10Q after the legal action was
initiated, as likely they established a reserve for their expected
liability. That might quantify the amount. Keep in mind if the final
settlement was less than any reserve, then in the report after settlement
there may be a credit / gain marked as litigation, which would represent the
excess reserve.

- ----- Original Message -----
From: "Kelly Short" <kelly.short@fw.us.neoris.com>
To: <canslim@lists.xmission.com>
Sent: Friday, November 15, 2002 3:24 PM
Subject: [CANSLIM] Lawsuits that settle for "undisclosed amounts"


A little quiet out there so I'll take a moment to ask a question:

How could one determine from financial statements a companies monetary
liability for lawsuit settlements that are not made public?

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