In principle, and given the circumstances of the company, I fully agree that using the money generated by settlements to pay a divident or dividents will not serve the best interests of the company and its shareholders. Having said that, however, I want also to point out that whether this distribution is good or bad for all the parties involved it all depends on how the management itself proposes to use these funds, how large these amount to and whether there is a reasonable likelihood that there is going to be a flow of such revenues over time. In this regard I can also see a number of foolish ways they can use to squander the money. They will not be the first or the last to do such a thing.

On the other hand, as it was already pointed out buying shares back it will cost far far more than 10 millions for the simple reason that a public company has to notify the SEC of such a purchase and therefore the market will know. This, in turn, implies that the price will increase substantially- assuming that settlements provide the company with the necessary wherewithal. This, most likely, will reward shareholders handsomely. Other possibilities are: 1. aquisitions that will provide us with a range of products and technology and 2. putting the company out for sale since then the market can ascertain the value of the company easier.

From the last two, the first option requires knowledge and astuteness. Nobody in the managerial team has any experience on this subject but they can always hire help. On the other hand, the second choice is far easier because the company can engage the services of a Wall Street bank to find a buyer and take care of any negotiations.