Quote of the Day - I regard golf as an expensive way of playing marbles.
Complying with SOx has proven to be too much for many small companies. According to the Albany Times Union article linked above, Lincoln Logs, Ltd. has been paying almost $240,000 per year for accountants and compliance with Sarbanes-Oxley reporting requirements.
As a solution, Lincoln Logs will offer its shareholders a reverse stock split to trade 500 shares of stock for one, reducing the number of shareholders to 132. The company will then fall below the SEC's radar screen, and eliminate the expensive accountants. It's a welcome relief for the company that posts an income of $15 million per year.
Now if we could just figure out a way to accomplish the same thing in litigation. Well, how about it? What can lawyers do to lessen litigation costs that can cost the same or much more in a standard litigation matter?
There are a number of options. Insurance, for one. Unfortunately, that won't pay all the costs, and it won't cover the typical breach of contract cases. Another option is mediation or arbitration, but with $600/hour private judges to pay in addition to the lawyers, that gets expensive, too. Early settlement? Possibly, however, litigants worry that they're leaving too much money on the table and not fully exploring what happened in the case.
There's apparently no ready solution. What are your thoughts?