Sunday, September 19, 2004
Air America: The Corporate Law Aspects
ProfessorBainbridge.com: "As reported in today's WSJ (available free here), Air America is in deep financial trouble:
Many of Air America's investors and executives say they thought the network had raised more than $30 million, based on assurances from its owners, Guam-based entrepreneurs Evan M. Cohen and Rex Sorensen. In fact, Air America had raised only $6 million, Mr. Cohen concedes. Within six weeks of the launch, those funds had been spent and the company owed creditors more than $2 million.
When the problems came to light, 'we realized that we had all been duped,' says David Goodfriend, the company's acting chief operating officer.Indeed, if the facts turn out to be as the article reports, there is a very high probability that investors will be able to sue Cohen and Sorensen for securities "
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