Yet another class-action lawsuit is being filed against the underwriters of Value America’s ’99 initial public offering. Shareholders charge that they created a distorted sense of demand for the stock. Reed Williams has the story in today’s Progress.
2 thoughts on “VA Shareholders Sue…Again”
I can’t begin to express how little sympathy that I have for VA investors. I was witness to the buzz around town when the company was about to start, the rich folk talking about what they were going to invest. I got a few of them to explain it to me, and I tried to convince them why this 0-inventory business would be a disaster. Not because I’m some business uber-genius, but because it was so grossly obvious that this model sucked. What was really incredible was that they managed to IPO and sucker millions of people into investing in them.
They’re lucky that Alan Greenspan isn’t suing them for flushing so much money down the toilet.
Yeah, if you were thinking models then, Value America was a load of crap, but most people were looking at the .com suffix, hearing IPO and thinking life would be green if they just got in on the ground floor. It happens.
If you jumped the proverbial bandwagon looking for life in the fast lane or said “they’re doing fine, see, because X has a big new house” there’s not much anyone can do for you.
Now, if your financial planner (get one before you throw money at strangers) put your cash in VA, they deserve a boot in the ass.
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