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Late to the party
This isn't a case of sour grapes by an investor that got their timing wrong, Chrysalis is claiming that the company engaged in “deceit, negligent misstatement and/or misrepresentation” at the time of their initial investment. That's potentially fraud and other criminal activity.
Not Looking Good ,, https://www.proactiveinvestors.com.au/companies/news/1045796/chrysalis-steps-up-legal-action-against-revolution-beauty-1045796.html
Looks to me like good support here from the fall, like I said, nice bit of profit for 2/3 days for someone ! No more comments from me for a while.......
The SP didn't fall of a cliff but dropped over a couple of weeks, as professional investors there were the stop losses?
Thirdly, this isn't new news. In my eyes chances an action like this goes any further than just a threat in a letter are fairly slim. A case like this could last for years and if successful would then open floodgates across the uk for similar actions and I'm not sure the "powers that be" would want that. Potential legal costs would be huge for either party (unless their advisory are on a no win no fee or % of claim achieved). Goes back to the basics of investing in my eyes " The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments."
Well I highlighted that something was going on Thursday(when it started falling for no reason) then the statement comes out .! Hopefully the short position is being covered today..... nice couple of days profit for someone...Comments re Boohoo are ridiculous, they are major shareholder, why would they want to jeopardise their own investment !?
Must work for them or has a short position. Clearly doesn't understand the business. Boohoo are significantly up on their investment and have installed their own people onto the board to propel growth. They weren't invested at IPO and even if so they would essentially be launching a case to then defend themselves!
Ha, Boo are up on their investment....do you work for Chrysalis Investments. If this was going to fly there would be no end of claims against all companies. Seems like its just a bitter move in the hope of a hand out.
Just waiting for Boohoo to launch a similar case against the company..They are sitting on massive losses,and probably for same reason as today's company..It's quite a series matter which has been successful in the US for compensation..Rev B has more or less admitted deception by previous directors with one having to give back £1.5m and the other removed from his position
Like what?
Definitely some skullduggery going on today.
Can you imagine if every investor was allowed to claim against the company it was trading for selling to low and buying too high and general poor decision making ??!
Why would William Currie recently buy more shares if they thought this was going to be a concern? You would like to think they have more knowledge/insight on the outcome then the average share holder posting on a bulletin board
Worse than that. They would have had 1:1 meetings with the founders and previous management team, and clearly feel that they were misled or worse. Chrysalis' actions are pretty unprecedented...
Ajc...They were mislead by the company statements claiming financial and trading health,whilst knowing that there were internal irregularities..The claimant bought a lot of shares on the basis of the statement...The previous CEO was kicked out and it seems the board were just gung ho about everything
The legacy issues roll on and all of what went on previously.
It's substantial monies that Chrysalis are after and I have to agree with you that if you settle with one shareholder or lose at court then it could end up being that everyone who sold and lost in consequence has a claim. Could they afford to pay and keep the business running as a going concern if that were the case then that might be the question at that point.
The converse of it could equally be argued reference Chrysalis' losses in that if they hadn't sold then their losses would have been nowhere near as much as the share price has been in the 33p to 36p at least twice since relisting and indeed a question mark would always exist as to how much of their own forced selling actually caused the dip in the share price to where they realised their losses.
Fwiw I did think REVB settled far too leniently previously with those responsible and there is in my opinion still the FCA side of things to come and that is perhaps Oculus where those responsible will be punished individually and appropriately, as the FCA you would expect will wish to make sure that the same doesn't happen in the future.
Personally I think its kind of a hard one to contest when its BDO the auditors that unearthed things and the RNS's exist from the time with what was said but that is just my own personal viewpoint and opinion.
Hopefully the BoD have more insight into things than I.
Nobody forced them to sell and incur the losses they have. That was their choice, and if they had held, their their losses would have been far less today. Obviously we don't know the full details as to what they feel substatiates their claim, but I don't see what the grounds are when you sold by choice rather than being forced.
I'm not sure how any compensation claim could be approved under their grounds without also having to consider all other investors holding at that time. If any claim was deemed justified I'd also like to think the pockets of those responsible would be targeted rather than the company otherwise investors are being hit for a second time around as the reaction in SP this morning shows.
This one for the long term
Anyone know of any news out there ? Seems someone is either taking profit from decent size position or director sale ?
Bit of a sell off this afternoon, but still going in the right direction.
Warpaint (w7l) released a very positive trading update yesterday so REVB benefitted from this.
I believe there may have been a broker update yesterday prompting the move but I can’t say categorically as I don’t have access.
The amount of regular purchases in the 10,000 to 50,000 area - both automatic and ordinary over the past 2 weeks is interesting, and hence the price rise accordingly.
The Times Square advertising campaign has been well received and is expected to more than pay for itself in additional sales - but the exposure and new buyers are the key points.
So who is building a stake and are internal figures being leaked out to institutions?
BooHoo can't be complaining either as the SP is more or less the same in value ...