GMC Holding Corp (GMCC) Class Action Lawsuit
George M Khoury, a previous CEO of GMCC (then Here Comes Grandma), is trying to organize a class action suit against GMCC. Additionally he filed in 2005-May a suit (case number 13-2005-CA-008899-0000-01) against GMC Holding Corp, CEO Richard Brace, and former director Stuart Cooper. It would be great to see investors fight back against GMCC and Brace but I'm skeptical of this effort for a few reasons.
Khoury's announcement is filled with Richard Brace class wishful thinking and self-contradiction. Towards the end Khoury writes In the event the technology the Company claims ownership too (sic), has a value of 350 million dollars, shareholders will be well served in joining me and others in this class action suit. It's self-contradictory to entertain the idea of 9 figure asset sales while contemplating a suit, since if Brace really was negotiating a 9 figure deal, shareholders would want to cut him some slack. Worse, shareholders should not be encouraged to continue to daydream about the motor or selling it. They need to wake up and realize that there is no invention and there are no buyers.
It's hard to see what's the commonality of interests between the older shareholders such as Khoury who turned over control of the worthless GMCC to Brace in 2002 in exchange for a share of whatever he could make of it and the new shareholders who turned over actual money in 2004-2006 to own a portion of a "fueless motor". I've talked to Khoury about this and he hasn't answered.
Finally, given Khoury's past involvement with Brace and GMCC, it's possible that investing in a Khoury led effort to recover their investment wouldn't be throwing good money after bad. A credible recovery effort would need to be run from outiside Castleberry.