It appears that there has been an interesting turn of events in the Civil Case. Freestone filed a report today which stated that they reached a settlement with Dave, Tom, one of the ESS companies and the new guy Larry Shultz (nothing is on PACER yet about it though).
I’m not sure what to make of this. Usually settlement agreements are private, but this one was posted by the company. I’m shocked Freestone settled with these guys! I also can’t believe that they settled for no return of cash! They were suing for more than a million dollars, and then they settled for canceling most (NOT EVEN ALL) of their shares?!?!
My Presumption:
I’m going to assume that the depositions took place, and there was some piece of evidence that was a bombshell. Maybe that changed the tide of the depositions and caused settlement talk. Moreover, based on the recent Government Sentencing Recommendation it looks as if the IRS is going after 1.8 million dollars. Most likely that took away the possibility of receiving any monetary damages. That doesn't explain why they let them keep any stock in their company.
In the last few filings by the two attorneys it seemed as if the Civil Case was reaching a boiling point, and thus this settlement comes as a surprise. I’m going to put my feelers out and see if I can find out what caused this settlement, and the terms upon which it was settled.
-ESS Investor
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