. Rights Offering On September 00, 0000, IDN filed a Registration Statement with the SEC announcing a rights offering for 000,000 of its shares, whereby its stockholders were to receive one non-transferable right to purchase one share of IDN's common stock at $0.00 a share for every ten outstanding shares of common stock held on March 00, 0000. Second Amended Complaint at ¶ 00. Plaintiffs allege that the rights offering harmed them because it had "the effect of increasing the cost to cover their short positions." Id. at ¶ 00. 