Two years ago, Sean O'Neil, CEO of Design Solutions, Inc., was sentenced to pay $425 thousand to a company named Advanced EDR Systems, LLC (AEDRS). According to the lawsuit filed by AEDRS, O'Neal had stolen trade secrets and proprietary information and had subsequently began using that information to compete against AEDRS. In an attempt to evade this legal obligation, DSI ceased operating under that name and began operating as Solutions Group, Inc. (SOLU.PK).
In brief, this story tells us how SOLU - the main character of today's story - came into existence. Despite all these accusations, O'Neal dos not seem worried at all. On the contrary, SOLU took advantage of the stolen trade secrets and released a final product on the market through iDrive, a Romanian-based subsdiary. In addition, last Friday the company was reported to have participated in a large-scale exposition in Florida.
Some of today's most successful enterprises once started as pink sheets. And there is nothing wrong with that. The current case, however, only shows that few companies are able to make a silk purse out of a sow's ear and SOLU will never be one of them, as long as it is run by people with bad reputation.
As far as penny stock investors are concerned, however, they only seem to care about the price fluctuations and volume movements of SOLU stock.
Sean O'Neil behaves as if he has already got away from the sticky situation of being a defendant. SOLU stock is being traded freely on the pink sheets. Will he manage to clean his reputation? Maybe yes, may be no. Will his company become the next multi-million dollar successful corporation? Hardly.