Historically, RICK has sought to rapidly settle legal cases. This is the type of business that comes with a lot of legal risks and that aspect is not new to them. You are right that this is a bigger case and it will drag for a while. The good news is that it should not significantly harm the fundamentals of the business in the near term, and they can now step up hopefully step up buy backs, which would be highly accretive. They claim that this is all baseless so I bet they are buying back stock quite aggressively. The balance sheet also should not be an issue here.
jussi i would severely trim Rick
this is gonna drag on
remember your lessons learned
Historically, RICK has sought to rapidly settle legal cases. This is the type of business that comes with a lot of legal risks and that aspect is not new to them. You are right that this is a bigger case and it will drag for a while. The good news is that it should not significantly harm the fundamentals of the business in the near term, and they can now step up hopefully step up buy backs, which would be highly accretive. They claim that this is all baseless so I bet they are buying back stock quite aggressively. The balance sheet also should not be an issue here.