Yesterday, the lawyers for the plaintiffs in the Schering-Plough ENHANCE Securities Litigation filed a letter with the court. It answered arguments made by Schering's lawyers, about a newly-decided federal securities case, called Avaya, in a letter filed only the day before. I think Schering's lawyers at Lowenstein Sandler (once again) bit off a little more than they could chew. You see, the Avaya argument they made opened the door to this succinct plaintiffs' argument about the arguable inference of scienter (or "guilty knowledge") displayed by Carrie Cox's exercise of stock options, and immediate resale of massive amounts of stock, prior to the much delayed-disclosure of the ENHANCE results. That one transaction apparently amounted to 11 times her annual salary, and dumped 65 percent of ALL her Schering-Plough holdings, at once. [Oh, and it also allowed the plaintiffs to re-argue the probative value (also on scienter) of the CafePharma postings] -- click to enlarge:
Wow. That'll leave a mark.
Now, I'll be off the grid until Saturday -- so, until then, do keep it all spinnin' -- with much good Karma.