Pink Sheet Stocks

[crin63]

2 different situations.

1) A company has been either correctly or falsely presenting itself as a certain stock symbol for several years. All the online financial sites show the symbol and this company to be the same. All the sudden this week the company posts a note on their website that the stock symbol does not represent them. Do stock holders have any recourse? The stocks are pink sheet.

2) A guy in Texas came up with some kind of safety valve for oil rigs. He started a company, patented his valve and began selling stocks (pink sheet). He sold the manufacture of the product off to another company for millions, retained the patent and went to work for the other company. Those who bought stocks in his company are left holding stocks to only his patent which has no potential upside. Do the shareholders have any recourse?

[Mr. P]

Did you lose money?

[crin63]

Did you lose money?

My dad lost about $10,000 in 3 stocks.

[Yurt]

you can start here

http://www.sec.gov/about/laws.shtml

in CA corporations are be governed by state law and federal law. the deciding factor depends upon various facts, such as number of SH. california has its own corporate code, but sounds like you also have a texas company and that brings up jurisdictional issues which are governed by law and are dependant on the individual situation.

if any of the companies are CA companies, you can go here for further information:

http://www.sos.ca.gov/business/corp/corp_naav.htm

[Mr. P]

My dad lost about $10,000 in 3 stocks.

That's too bad...I never deal with OTC, BB, penny or pink stocks...WAY TOOOO much risk.

I'd say a lesson learned..Legal fees to pursue it will probably meet or exceed his loss. Just my opinion of course.

[fj1200]

2 different situations.

1) A company has been either correctly or falsely presenting itself as a certain stock symbol for several years. All the online financial sites show the symbol and this company to be the same. All the sudden this week the company posts a note on their website that the stock symbol does not represent them. Do stock holders have any recourse? The stocks are pink sheet.

2) A guy in Texas came up with some kind of safety valve for oil rigs. He started a company, patented his valve and began selling stocks (pink sheet). He sold the manufacture of the product off to another company for millions, retained the patent and went to work for the other company. Those who bought stocks in his company are left holding stocks to only his patent which has no potential upside. Do the shareholders have any recourse?

Any luck with this? What are the symbols (if you want to share)?

1) Check the SEC Edgar filings for information on the company, you should be able to search by stock symbol

2) Where'd the millions go? It seems it should have gone to the shareholders, after paying back debt, and not the exec. If he owns the patent and didn't transfer it to the company, say only licensed it, then he can take it with him. Again check edgar for the Sec filings

Shareholder lawsuits probably wouldn't be worth the trouble unless there's alot of money and shareholders.