Startup Sued For Defrauding Investors

from the just-one? dept

I think I was expecting a better story when I read the headline for this one. I mean, after all, how many startups out there probably "defrauded" investors in some way or another? However, this is a case of a really idiotic company. The company is being accused of selling unregistered shares to the public. Basically, they held an IPO without following any of the rules. They just sort of announced they were going public, and failed to disclose all sorts of information - such as the fact that they had no infrastructure, but still expected 1.7 million customers by the end of 2001.