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"A method for shaking down companies about to IPO by surprising them with some claim in the hopes that the company will pay to make the problem go away without
by davidw 3y ago
"A method for shaking down companies about to IPO by surprising them with some claim in the hopes that the company will pay to make the problem go away without fighting the claim"
- soneil 3y agoSure does feel like that, doesn't it. "That's a nice IPO you have there, it'd be a shame if anything happened to it."
- nickburns 3y agocolorable claims of law are colorable claims of law. let's not be dramatic. both parties will expend to work it out, and if either does so beyond their ultimate legal obligation, they'll be entitled to pursue a remedy for it under that colorable claim.
- davidw 3y agoAnd it just happened that they found this thing right before the IPO. I don't buy it.
- nickburns 3y agoyou know how when you file for bankruptcy, you're legally required to notice (an artful term) any/all potential creditors that, if they believe they hold a legitimate debt, it could potentially be extinguished by the pending bankruptcy declaration without their claim ever having an opportunity to be heard (another artful term that goes hand-in-hand with 'notice')? same thing when you die and your estate is settled? well this is like that, and its timeliness is actually the point. this is the process for which the IPO holders signed up. and at least part of its legal justfication is to not have entities offer ownership up to the public, with which ownership shares undisclosed/unknown debts, liabilities, or obligations could follow. it's certainly not a conspiracy.