Many investors of Noble Group (shareholders, perpetuals, bonds holders), who have suffered massive losses, have asked us how they could sue Noble, its managers and the parties responsible for this major fraud, including its auditor and the banks that have facilitated this scheme. These investors are naturally exasperated. The same team that has cooked the books, sank Noble and paid itself dozens of millions every year, is not held accountable. These managers are now given another run in complete impunity. This scandalous situation is unprecedented.
We have talked to experienced law firms. They are ready to represent the interests of these investors, challenge the scheme of arrangement and start ligation against the parties responsible for this fraud. Note that whatever the result of the shareholders vote on the restructuring is, it will not prevent the investors who voted against from opposing the scheme of arrangement. Litigation funders are also interested in financing these lawsuits, which would considerably lower litigation costs. We expect many objections to be raised against the scheme of arrangement. For example, the legal release, designed to protect a long list of organisations from future lawsuits, is extremely wide, and very unusual. The new Noble is absolutely not financially viable. It has almost the same financing costs. Commodity banks are generally expected to refuse to finance this company as long as the same management is in place.
Some securities holders already want to join this action. We encourage other investors to contact us. Note that the securities holders who have already sold Noble’s securities can also contact us if they have suffered an economic loss.
We also invite Noble’s former employees who would like to share information on Noble’s financial misrepresentations and other wrongdoings to get in touch. We have recently received internal documents that confirm key aspects of Noble’s accounting and leave no doubt on its fraudulent nature.
The “new Noble” as it is advertised in the restructuring proposed by Noble is a scam, exactly as the “old Noble” was a scam. It is another trick to foul investors. It will be the same company, with the same failed management. The same persons who have lied to investors for years are already lying on the viability of the new Noble. How many times did this management promise a turnaround? When was the last time Noble’s managers said the truth? In the US, Noble’s managers would have undoubtedly been charged with fraud by the SEC. As usual, Noble’s managers will pay themselves obscene salaries and bonuses. The ad hoc group will get rid of its exposure as soon as possible, leaving other investors with heavy losses.
There is only one way for Noble securities holders to recover their money: to sue the firms and persons who have organised this fraud. It is the right thing to do in terms of justice, but it is also the only viable strategy to get their money back. The restructuring proposed by Noble will direct any cash flow to management and the ad hoc group. We expect the other shareholders to lose everything.
Although Noble’s managers and the auditor E&Y are responsible for one of the largest frauds of the past twenty years, they have been allowed to operate in complete impunity. Noble’s securities holders (current and past) have the power to end this unprecedented scandal.