It was not meant to be this way, but things are going from very bad to even worse at Digital Equipment Corp, which now faces lawsuits by holders of its preferred shares, who complain that they were misled into investing in the issue only weeks before this week’s huge loss was announced, and for once, such an action appears to have a modicum of merit, and the image of the once rock-solid company is hardly helped by the fact that two insiders sold parts of the their holdings in the company earlier this year, before the shares went into a tailspin; according to the Wall Street Journal, the insiders, both vice-presidents, sold their holdings at an average $31 a share between mid-February and late March, but the shares are now down at around $21.
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