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.