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Did they not get screwed, though? As far as I could tell from the article, StartEngine's contract was solid. The Style Club LA had no legal right to transfer a
by Bartweiss 10y ago
Did they not get screwed, though?
As far as I could tell from the article, StartEngine's contract was solid. The Style Club LA had no legal right to transfer assets and IP to a new company without permission from StartEngine, which they did not receive.
So Cuban and Shark Tank invested in a company which came to them under false pretenses, with a significant undisclosed liability. If that's the case, they absolutely got screwed - they probably aren't culpable for Style Club's lack of disclosure, but they did get tricked into a bad investment.
- icebraining 10y agoBut is there evidence beyond the episode that the deal actually went through? I mean, it's just reality TV, surely a real negotiation happens afterwards where this stuff is checked, no?
- deeth_starr_v 10y agoA commenter below posted a link to prweb touting the Cuban investment in the company. So it seems like Cuban did the deal... Edit: typo
- amscanne 10y agoI wouldn't take a press release from the company as evidence that the deal actually closed, especially if you suspect some slightly shady dealings.