I don't have anything but second and third class rumors and the experience of working with a few people there in the past.

A quick summary of what I heard

All senior management caught flat footed with the down-turn in late 2007 and did not act until late 2008 and even into 2009 to address the issues. During the last year, many big cases settled, were suspended or disappeared because the defendants were no longer financially viable.

They are expecting a lot of work from allegations of misuse of bailout funds and stockholder suits.

About 30% of my work is litigation related. Historically my litigation activities decrease at the beginning of a recession and as we start coming out of the recession. My litigation activities didn't slow until October of 2008. Projects are being delayed. I still have one project suspended from the last recession when the defendant went to the judge and advised the court that they could not pay any verdict directing costs and asked that the case be suspended.

I think LECG clearly is in this workload valley associated with the beginning of a recession. I have no idea where they are in the downturn/upturn curve. If they are going to come out of the valley in 2009, I expect improvement to start in May at the latest. If it doesn't happen by May, I expect a longer recovery.

I don't clearly understand all the various compensation systems at work here. I do know that there is limited risk because many employees only get paid a percentage of the fees they bill and collect.

Finally (hence the title) I have heard that the senior managment is looking for capital to take the company private. This is a great time to buy the company and take it private if you think the company is going to turn around in next 6 to 12 months. The question is where can they find the money to buy out the stock and what will it take in the way of an offer to get the stockholders to sell?

I have tried to purchase several large blocks at $2 but no volume. I think it will take something above $5 to get a buyout