Saturday, May 01, 2010

Compensation for Pinnacle Notes

Hi Mr Tan,

I have purchased $10k of Pinnacle Notes Series 7. The current value is 0.01% I was offered 30% compensation. Should I accept or reject the compensation? Can I join the legal action after accepting compensation?

You should accept a flat 30% compensation, WITHOUT handing over your notes, and WITHOUT deduction of interest. If interest is deducted, then the net compensation is quite small, so there is no point in getting this compensation.  If you get compensation, you can still join the class action, but you must still hold the notes. Don't hand it over to the distributor.


Anonymous said...

Tell you a story. A lady was raped. The police asked her to talk to the rapist uncle to settle amicably. The uncle says, I offer you $3,000. If you are not happy, you can go to his grand father. If his grand father cannot settle, you can sue the rapist.

If you take the $3,000 you feel lousy. If you don't take the $3,000, by they time you wake up and sue the rapist, you have lost all the energy to fight, and you may have already washed the "dirty clothes with the rapist semen" a hundred times.

It is a crude story. Well this is how I made to feel too.

Anonymous said...

Good point. That is why when a woman is raped, police must take over the case. Do you think the woman who is being raped knows which section to press charge, how to collect specimen as evidence in court, how to apply for court order, etc.

Anonymous said...

I assume 30% compensation means you sold 3k of your Notes to the FI @ $1 a piece. Make sure you don't sell all your 10k notes to FI at a heavy discount of 70% i.e. @$3k or 10k notes.

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