Thank you for posting that particular section of the 10-K. When I read it, it raised all kinds of red flags for me which is why I began to dig for information. The link I posted regarding Barbara Schaffer's suit and subsequent post from that complaint might very well be the same situation that PTSC investors find themselves in before too long.

Here is another bit from the Schaffer suit.

DECISION AND ORDER

MARRERO, District Judge.

Plaintiff Barbara Schaffer ("Schaffer") brings this action pursuant to § 16(b) of the Securities Exchange Act of 1934 (the "Act") for disgorgement of short-swing profits allegedly obtained by defendants acting as a group in violation of that section of the Act. Three motions for dismissal pursuant to Fed.R.Civ.P. 12(b)(6) were previously granted by this Court in its September 29, 2000 Decision and Order. See Schaffer v. CC Investments, 115 F.Supp.2d 440 (S.D.N.Y.2000) (herein "Schaffer I"). Thereafter, Schaffer amended her complaint, in accordance with leave granted therefor in the dismissal Order. The defendants (herein collectively the "Defendants") then moved to dismiss the Amended Complaint. These three motions are presently before the Court.

The Court will not revisit the particulars describing the parties or issues presented previously, familiarity with which is assumed, but will only address issues arising from the challenges to the Amended Complaint, including: (1) whether a common objective of controlling the stock of Lasersight, Inc. (the "Company") or manipulating its stock price is necessary for the existence of a group within the meaning of § 13(d) of the Act, and (2) whether preferred stock is exempt from the definition of "equity securities" under § 13(d) of the Act. For the reasons set forth below, the Court denies each of the motions to dismiss, and will allow Schaffer to pursue limited discovery within a time frame to be specified.

http://scholar.google.com/scholar_case?case=8566486996690185920&hl=en&as_sdt=2&as_vis=1&oi=scholarr