So they are basically paying people, in potentially worthless shares, in order to stop being sued. I guess that makes sense because if they are sued then the shares will definitely become worthless. This is a cunning move but I would never accept it as an investor. Why accumulate even more shares in a dodgy company when suing might actually result in real cash you can actually spend.
No investor in their right mind will accept this deal. It's a foregone conclusion that Theranos is going under at some stage soon.
As you said, the shares are worth jack shit.
Ruport Murdoch just sold $125 million in Theranos shares back to the company for a $1
Strange deal, I would have held out for at least $100. That would at least have paid for a pizza night at home.
Tax shelter. Can take it as a loss now against other income.
If the technology doesn't work aren't the shares worth little or nothing? Why bet on the future of the company if there's a cash settlement still possible?
Maybe there's a chance the IP is worth something.
Agreed. They patented all their 'ideas'. If they could not get them to work with todays tech does not mean that they cannot work in the future. The patents still hold...