This morning I received an email about a class action lawsuit against VMware, reminding shareholders who purchased VMware stock between April 22, 2008 and July 22, 2008 of an upcoming January 23, 2009 deadline to seek a lead plaintiff appointment in this lawsuit.  The lawsuit specifically calls out Diane Greene (former President and CEO) and Mark Peek (CFO), claiming the two mislead investors about the company's business, operations and prospects, stating the following:

Specifically, the defendants allegedly knew but recklessly disregarded and failed to disclose to the investing public that: (i) the Company was facing increasing competition and lower-priced rival products were lengthening the time it took for VMware to close deals; (ii) customers were taking longer to sign lucrative multi-year enterprise license agreements, and were instead signing smaller, short-term contracts; and (iii) as a result of the foregoing, defendants misrepresented the Company's business and future prospects. The complaint further charges that, during the Class Period, Company insiders took advantage of the undisclosed adverse information by collectively selling 86,541 shares of their personally held VMware common stock for gross proceeds in excess of $5.8 million.

I won't print the entire statement or print the name of the law firm filing this suit, you can Google and search for it yourself if you are interested. 

I understand why this law firm is desperately trying to find a lead plaintiff for this lawsuit.  I think it is absolutely ridiculous that they think someone needs to be bailed out here.  The country has become sue happy.  Sure, there is a time and a place, but this?  Come on.  Really?  This is a complete waste of the court's time, don't you think?  They are making claims of insider trading, lying and other accusations that seem impossible to prove.

I mean come on, really?  As a people, are we expected to be bailed out for every little thing that doesn't go our way?  Is this the price we pay for giving every child a trophy, win or lose?  Where is the accountability?  Where do bailouts end? 

Who throws their money and savings into something without a little research?  Do you typically invest in a black hole?  Do you know ANYTHING about the company or industry that you invest in?  Were you just expecting to ride the rocket ship of VMware's stock up and away without the fear of it coming back down to Earth? 

And when there is no research or thought put into your investment, why is SOMEONE ELSE always to blame when things go South?  And since when is the stock market a guarantee?  I've lost investments on a number of stocks over the years.  Who knew I could blame someone else for those loses and demand my money back?!?!  Interesting.

Ask around.  Read a magazine article or two.  Search the blogs.  Who didn't know that Microsoft and Citrix were gunning for VMware?  Who didn't know that hypervisor technology was becoming commodity and becoming free?  Who didn't know that a competition steamroller was coming in the form that VMware as a company had yet to face?  Who hadn't heard about the economy troubles taking place here in the US and around the world?  Don't these things tend to equate to a potential down slide of revenue?    

People are looking for the chicken in every pot, a car in every garage.  And when something doesn't go our way, well, someone else must be to blame, right? 

Sorry for this rant.