I also recall the day of the sale signing non-compete, non-disclosure, patent protection and a myriad of other forms I don't recall protecting the parent and tying my hands. I'm sure that's pretty much standard procedure, especially for companies operating under SEC guidelines.
I'm not an attorney but as a business person I understand the allegations being made and potential consequences. Based on what is in the suit I think there is something there but that does not mean people acted in bad faith. It just means people didn't act in accordance with established accounting practices which can happen for a number of reasons. However we all know the courts really don't care about excuses. I suspect there will be fallout however I would be shocked if the numbers approach anything close to what is being alleged in the lawsuit. It is typical and a really a responsibility for the plaintiff's to throw the kitchen sink at the whole mess. Lawsuit payouts rarely go up from what is being asked but almost always go down from what is being asked. In this case they seem to have said every single dime of money that went to any of the secondary companies was completely fraudulent. The more likely scenario is that transactions were not "at arms length" and as such discounts/profits were moved between corporations in an illegal manner. That leaves exposure to a percentage of the transaction and not the whole transaction.
With all that said the money to defend this lawsuit along with probable SEC investigations is going to be in the 100's of thousands at a minimum.
The university doesn't have $25MM, but it sure as hell got Tier 1 done of the Master Plan.
FWIW there was no attempt to conceal ownership in the third party corporate entities, by the defendants. There are legal means to conceal entity ownership from ANYONE and that was not done on the one corp. name I checked. Could be very indicative of any lack of intent.
So I haven't read through this whole thing. We still renovating the Tigue?
The UL governing board may vote as early as Thursday to name the baseball complex for a Lafayette oil business family.