DPW Holdings Inc (NYSEAMERICAN: DPW) is having an incredibly strong start to the trading session this morning after the company announced a lawsuit dismissal. Of course, the news excited investors, sending the stock up. Today, we’ll talk about:
- The lawsuit dismissal;
- what we’re seeing from DPW stock as a result; and
- what we’ll be watching for ahead.
DPW Gains On Lawsuit Dismissal
As mentioned above, DPW Holdings is having a strong start to the trading session this morning after it announced the dismissal of a lawsuit. The announcement came via press release early this morning.
In the release, the company said that the United States District Court for the Central District of California has granted the dismissal. The case was with regard to claims as filed in a lawsuit initiated by Ethan and Greg Young, and represented by Faruqi and Faruqi.
DPW said that the court granted the motion by the company to dismiss all claims asserted by the plaintiffs. These claims included unjust enrichment and gross mismanagement. However, the Court ruled that the claims were too broadly alleged and not specific enough to each director.
DPW said that the court did provide the Paintiff with 14 days to file an amended complaint in order to add specific allegations. This 14 day period must come to a close before the dismissal becomes final.
In a statement, Mr. Milton C. Ault, III, Chairman and CEO at DPW, had the following to offer:
The Company, its management and its Board of Directors welcome this decision. All the members of the Board take seriously their roles as Directors, especially our independent members. We look forward to being able to fully focus on moving the Company and its subsidiaries forward. We thank our law firm for doing a job well done for our management, our directors and our stockholders. DPW remains confident in its position that the claims made by the Plaintiffs will ultimately be determined to be of no merit.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case, of DPW, the news proved to be positive.
After all, the dismissal of the suit means that legal costs will no longer be required to fight it. Moreover, it means that the company has been victorious and will not be penalized as a result of the case.
So, it’s not surprising to see that excited investors are pushing the stock up. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:46), DPW is trading at $0.086 per share after a gain of $0.0034 per share or 4.12% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on DPW. In particular, we’re interested in following the company’s work to start providing value to its investors as the past year has been a painful one. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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