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The thing is, it's incredibly unusual for a corporation to just ignore the massive legal risks like this. They commingled assets and used the corporation in a w
by ameister14 4y ago
The thing is, it's incredibly unusual for a corporation to just ignore the massive legal risks like this. They commingled assets and used the corporation in a way that totally breaks the veil and means the directors are likely personally liable. That's honestly just moronic of them to do.
No idea why people invested in this, clearly nobody did their due diligence.
- jeroenhd 4y agoI wonder if that's how people will get out of lawsuits, by convincing the judge that no serious investor doing their due diligence would ever give these amateurs a single dollar.
- usefulcat 4y ago> no serious investor If they wanted to mitigate legal risks, it probably would have been better to take advantage of 'serious' investors, as opposed to less knowledgeable investors. I believe the latter group generally enjoys more legal protections.
- prepend 4y agoThere’s a scene in the Hulu show about Theranos where an investor was trying to do due diligence and they kept getting the runaround with crazy excuses. Like a comedy. They eventually walked. I guess the FTX investors didn’t walk. Makes you think how lucky we are that the financial system even exists.
- deleted 4y ago[deleted]
- HWR_14 4y agoIf the veil gets broken, is it possible that any of the liability splashes back on the investors. Like Sequoia or a16z?