Criminal courts tackle the question every day.
The stocks fell because of market conditions, they say, and the company is looking for scapegoats. He would speak only generically, not in relation to any specific case. One such case was filed in San Diego Superior Court late last month by Mobile PET Systems, a provider of diagnostic imaging systems for early detection of diseases such as cancer. In the complaint, the company says that Southridge Capital Management of Connecticut, along with York LLC of an offshore tax haven in the Cayman Islands and Thomson Kernaghan of Toronto worked to drive Mobile stock down through concealed short sales, thus permitting them to convert on the cheap. On March 2 of last year, in exchange for financing, Mobile had granted York the rights to convertible preferred stock, according to Mobile PET's suit.