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What’s absolutely stunning to me is the (former) CEO quote in the article says the company was under SEC investigation for fraud as early as November of last ye
by elliekelly 6y ago
What’s absolutely stunning to me is the (former) CEO quote in the article says the company was under SEC investigation for fraud as early as November of last year. And given that the DOJ complaint alleges the fraud occurred between January 2019-February 2020 I would be inclined to believe it. (Fraud doesn’t tend to just stop of it’s own accord.)
So was the investigation disclosed to Lightspeed and they decided to invest anyway? Who on earth would invest with someone currently under investigation for a scheme to defraud investors? And if it wasn’t disclosed, why not? Did that not come up at all during due diligence?
- yesbabyyes 6y agoIn this case the due diligence, while quite due, perhaps wasn't very diligent.