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Even though they aren't making money customers did pay to use the service. You can't just change the terms after you get the money - they've just defaulted on

Even though they aren't making money customers did pay to use the service. You can't just change the terms after you get the money - they've just defaulted on their obligations. The officers are opening themselves up to liability issues by continuing to run a known insolvent business and losing more investor money.

sp332 8y ago
I just cancelled my subscription and put this as the reason. It's too unpredictable to use the app. I have no idea how much money it's going to cost me to see movies with it anymore.
tonysdg 8y ago
Good luck -- straight from their Terms of Service: > You are expected to read these Terms of Use because your use of our Site and Service constitutes your agreement to the Arbitration Agreement and Class Action waiver described in Sections 17 and 18 below to resolve any disputes with us. Another damn arbitration clause. I'm so conflicted about these things -- on the one hand, I'm sure they defer many frivolous lawsuits. On the other, they seem to tilt the balance of power overwhelmingly toward the company/business/service. Do any lawyers out there know if there are situations in which these arbitration clauses wouldn't be legal & binding?
- slededit 8y ago
  The FTC isn't bound by that and are happy to go after false advertising - neither are the creditors. Running a bankrupt company after knowing it is insolvent is one reason for piercing the corporate veil. They have a duty to minimize the loss in this situation.
  - skinnymuch 8y ago
    How many times does the FTC go after these sorts of things? I genuinely don’t know. My gut assumption is they won’t be going after this.
    - slededit 8y ago
      I watched some old taped TV documentaries on YouTube and checked out what happened to the companies in the commercials. A surprising number met their end by the FTC or some other government agency.
skinnymuch 8y ago
Isn’t this a step towards their hopes of trying to make it solvent? Since they still have their whole notion of selling data. Not that either of us likely believe that’ll work but hemorrhaging money like crazy would mean they are done in a matter of days vs these changes could possibly somehow let them survive longer. Putting all that aside. What liability? From the government? They most certainly don’t have to worry about lawsuits. Anyone who wins any against them will be in a long list of creditors waiting to collect.
- slededit 8y ago
  Liability from the creditors. If a company is in default they must declare bankruptcy. Failure to do so leaves its officers subject to personal liability. When you fail to supply your customers with the agreed merchandise because you have no money you are bankrupt. Bankruptcy law doesn't allow you to pick and choose who you will pay/supply in hopes you get a last minute break.

sp332 8y ago

I just cancelled my subscription and put this as the reason. It's too unpredictable to use the app. I have no idea how much money it's going to cost me to see movies with it anymore.

tonysdg 8y ago

Good luck -- straight from their Terms of Service: > You are expected to read these Terms of Use because your use of our Site and Service constitutes your agreement to the Arbitration Agreement and Class Action waiver described in Sections 17 and 18 below to resolve any disputes with us. Another damn arbitration clause. I'm so conflicted about these things -- on the one hand, I'm sure they defer many frivolous lawsuits. On the other, they seem to tilt the balance of power overwhelmingly toward the company/business/service. Do any lawyers out there know if there are situations in which these arbitration clauses wouldn't be legal & binding?

slededit 8y ago
The FTC isn't bound by that and are happy to go after false advertising - neither are the creditors. Running a bankrupt company after knowing it is insolvent is one reason for piercing the corporate veil. They have a duty to minimize the loss in this situation.
- skinnymuch 8y ago
  How many times does the FTC go after these sorts of things? I genuinely don’t know. My gut assumption is they won’t be going after this.
  - slededit 8y ago
    I watched some old taped TV documentaries on YouTube and checked out what happened to the companies in the commercials. A surprising number met their end by the FTC or some other government agency.

skinnymuch 8y ago

Isn’t this a step towards their hopes of trying to make it solvent? Since they still have their whole notion of selling data. Not that either of us likely believe that’ll work but hemorrhaging money like crazy would mean they are done in a matter of days vs these changes could possibly somehow let them survive longer. Putting all that aside. What liability? From the government? They most certainly don’t have to worry about lawsuits. Anyone who wins any against them will be in a long list of creditors waiting to collect.

slededit 8y ago
Liability from the creditors. If a company is in default they must declare bankruptcy. Failure to do so leaves its officers subject to personal liability. When you fail to supply your customers with the agreed merchandise because you have no money you are bankrupt. Bankruptcy law doesn't allow you to pick and choose who you will pay/supply in hopes you get a last minute break.