Dec. 12 at 10:32 AM
$XBP $XELA I strongly disagree.
What happened to XELA (and now XBP) is not “legal but unethical” toward shareholders. Under U.S. securities law, actions become unlawful when there is intentional value destruction, selective disclosure, insider self-dealing, or market manipulation, even if they are wrapped in formally approved transactions.
Goodwill impairments, ATMs, reverse splits, and restructurings are only legal if done in good faith and with full, fair disclosure. When insiders benefit from pre-positioning, undisclosed related-party control, or engineered dilution, that crosses into breach of fiduciary duty, securities fraud, and market manipulation. Intent matters.
History shows many clear frauds were “visible” for years before enforcement caught up.
Calling this “legal” is exactly how these schemes survive. If intent and insider benefit are proven — it’s not just unethical, it’s actionable.