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Novastar Financial, Inc (NFI)

NFI stockholder...

NFI stockholder lawsuit from NFI mb

mhatmccane

409 posts

Joined
1/20/2006

NFI stockholder lawsuit from NFI mb
Posted: 04 Jul 06 7:43 PM

: NFI shareholder lawsuit question
by: tommytoyz

07/03/06 08:30 pm
Msg: 443047 of 443174

The specialist and broker dealers have been naked short selling NFI in conflict with established SEC rules and the 1934 Securities Exchange Act.

The FOIA data shows that someone has been massively naked shorting NFI while it as on REG SHO and discovery in the lawsuit will show exactly who. Any FTDs that are Ex-clearing will be shown as well.

The number of beneficial owners over this period has been requested per FOIA and the SEC is stalling on that front. Sooner or later that data will be out as well.

All this will point the finger straight at the NASD broker/dealers. They are the ones who provide the access to the hedge funds and their own proprietary trading to sell naked short to drive down the price of NFI.

Herb's, Gradient's, Eisinger's and Milberg Weis' involvement could also all come to light and all named as defendants as in conjunction with the OSTK suit, those connections could be proven.

This whole thing will unravel for the naked short sellers and manipulators - and that means the specialist and prime brokers for starters.

They will all pay and probably a multiple of the proven damages.

But it doesn't stop there. This lawsuit will only spawn more lawsuits I'm sure as the evidence produced can be used by other plaintiffs besides the original 35 and for other securities sold naked short.

Finally, the SEC will be sued, I'm 100% sure. For failing to enforce their own rules and writing rules that are in conflict with protecting investors and create unequal advantages to certain market participants - all conflicting with the main tenants of the 1934 Act and the SEC's own mission statement.

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Specific Stocks

Novastar Financial, Inc (NFI)

NFI stockholder...