Constellation Healthcare Share Discussion Threads

[stuffee] 31/1/2020 13:36

Unfortunately, my Nominee had to grass my identity - I received the writ from the Liquidator of Orion addressed to masses of the former shareholders two weeks ago, demanding repayment of all the consideration I received, including the dividends. I have been advised the writ has no authority in the UK, where any action against former shareholders who had no connection with the former bent management or any knowledge of their fraud would not succeed and I intend to ignore it. I gather about half the former shareholders will also ignore and half will be frightened to cough up voluntarily.

[parmared off] 11/12/2019 20:31

Perhaps transfer all your holdings from AJ Bell to another provider - make it harder for them to hit you with any fees....!?

[parmared off] 11/12/2019 20:29

I think they are after the money held in the IRS account concerning tax withholding. Let the big fish thrash out a deal - providing you had a smallish holdingI wouldn't lose any sleep over it. PM me if you like. Seasons Greetings P.O

[landay] 11/12/2019 12:58

I have received notification today that A J Bell have received a court order to provide details of the beneficial owners.
Does this mean we will be sued individually?

[stuffee] 05/7/2019 10:17

Just to cheer everyone up, I've been told that Orion has now filed an amended complaint challenging the previous decision that Nominee registered shareholders (and ultimately the beneficial owners) would not be liable for damages. I fear this might bring us all back into the firing line. Advise any vulnerable former CHT shareholders to seek legal advice; I've appointed WilmerHale, who seem sensible and are now advising several former shareholders.

[parmared off] 13/2/2019 15:39

A message for you landay

[scorpione] 13/2/2019 11:35

Good! I'm still trying to get my head around how on earth they can do this, if the deal has gone though!

[landay] 13/2/2019 10:40

Yesterday I received an email from AJ Bell informing me that the legal action against their company had been withdrawn.
AJ Bell are not charging their clients for any legal expenses.

[parmared off] 23/1/2019 07:05

Another message for you Stuffee

[parmared off] 02/12/2018 10:55

I have messaged you Stuffee.

[stuffee] 02/12/2018 09:15

PO

I requested my Nominee to instruct WH initially, who then passed over responsibility to myself.

[parmared off] 01/12/2018 13:32

Not sure how a beneficial holder within a nominee account can instruct WH. I would have thought it's up to the Nominees at this point.

[maiken] 30/11/2018 14:43

thanks stuffee,will do.

[stuffee] 30/11/2018 14:42

Have been in contact with Wilmer Hale, the New York law firm, who are pretty familiar with all the background and have given sound preliminary legal advice on defending this action. Around 10 nominees of former shareholders have appointed them. I do suggest all former shareholders should take US legal advice re this litigation. The more shareholders decide to engage Wilmer Hale, the lower the cost per head...

[parmared off] 15/11/2018 17:50

I have set you a message beckaroo

[stuffee] 18/10/2018 11:09

I think many nominees are apponting WilmerHale to defend the action. They are a significant international law firm with offices in New York, Boston, London etc. I will probably contact them. Any one else any views on advisers?

PO, I fear the subordinated notes are worthless. These rank ahead of shareholders, so the seasoned and "top rated" expert Chu, with 20 years experience at Blackstone, may indeed receive nought on his shareholding.

Orion is the litigant in which Parmar had some interest. Would be lovely if one of his interests indirectly benefits from the action as a result of his own fraud. The US legal system is a mass of surprises.

[parmared off] 17/10/2018 10:38

I would imagine that the nominees will, in the first instance, pull together and instruct some US legal team on their behalf. It is my understanding that there were some functioning businesses within all this mess so Chu can hardly claim he ended up with nothing for his money. Worst case scenario perhaps a % contribution (I can't see that it would be considered reasonable to hit all the 'innocent' shareholders with a 100% refund) Best case this is thrown out of court.

[stuffee] 17/10/2018 09:58

I received my notification about two weeks ago. The Nominees are correctly resisting the request from the litigants for details of the beneficiaries, but not sure how long they can hold out.

[parmared off] 17/10/2018 09:29

Thanks for your reply stuffee. Should beneficial holders have received anything yet from the nominees?

[stuffee] 17/10/2018 08:57

ParO
I have a copy of the summons delivered to all former registered holders. Your nominee should also have received it.

jon
Unfortunately, this is action in US not UK where different criteria for the consequences of fraud apply. Although we have good defense by UK standards, it might tend to be a long and tedious process and in my experience the action might only be resolved by some concessionary payment of damages by former shareholders, regardless of justification.

Not good.

[jon123] 17/10/2018 07:57

i can't see that flying anywhere orion didn't do there due diligence so at the end of the day they only have themselves to blame

[parmared off] 17/10/2018 07:50

This just gets better! Can I ask how you found out this information?

[stuffee] 11/10/2018 09:16

LITIGATION AGAINST FORMER SHAREHOLDERS

I have just received the extraordinary news that Orion, the vehicle that bid for Constellation two years ago, is taking legal action against the former CHT shareholders to recover all the consideration paid. It claims that due to the fraud undertaken by Paul Parmar, former CEO, and his pals, CHT was worthless when it bid and is therefore claiming against former shareholders.

I think such action against public unconnected former shareholders is unprecedented but there is a threat to recover assets from anyone who ignores the action.

At present the claim is against the registered nominee shareholders, but in due course they will no doubt attempt to claim against the beneficial owners.

Interesting if there is any comment from finnCap, who advised CHT and recommended us to accept the bid. Similarly I believe KPMG undertook due dili on CHT.

We need urgent legal advice on this but it is obviously uneconomic to seek advice individually. Is anyone else aware of this pending action and have they appointed any advisers?