by Carlo Longino

Not Disclosing Your Pump-And-Dump Past Might Make It Harder To Sell Your Company

from the paper-trail dept

Breaking securities laws doesn't mean that you can't keep running businesses -- just ask Vonage Chairman Jeffrey Citron. However, if you don't disclose your past to potential buyers of your company and they come to find out your white-collar crime track record, you shouldn't be too surprised if they see it as a turnoff. Rumors popped up yesterday that Yahoo was in talks to buy the Rivals.com network of sports sites for $100 million, with the deal described as "overpriced". However, two previous deals to buy the company are rumored to have fallen apart when suitors discovered Rivals.com's CEO's alleged criminal past as part of a pump-and-dump scam -- something he evidently failed to disclose to them. Hopefully the guy's figured out by now that it really isn't too hard to run de facto background checks on people using the web -- particularly considering it's a search company that's supposed to be the buyer this time around. Update: Apparently the CEO in question disputes these claims and is threatening to sue TechCrunch over the initial posting.

Reader Comments

Subscribe: RSS

View by: Time | Thread

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here
Get Techdirt’s Daily Email
Use markdown for basic formatting. HTML is no longer supported.
  Save me a cookie
Follow Techdirt
Techdirt Gear
Shop Now: I Invented Email
Report this ad  |  Hide Techdirt ads
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat
Report this ad  |  Hide Techdirt ads
Recent Stories
Report this ad  |  Hide Techdirt ads


Email This

This feature is only available to registered users. Register or sign in to use it.