When will the company make money? After two decades, it still can’t say. And there are enough other red flags that investors might want to be wary.
  • AbidanYre@lemmy.worldEnglish
    0·
    9 months ago

    Vonage did something similar where they let users get in on the IPO. Then got sued in a class action lawsuit because the stock tanked.

    https://web.archive.org/web/20121104141751/http://news.cnet.com/2100-1036_3-6079765.html

    Reading through that article you could probably find/replace with Reddit.

    The complaint alleges that Vonage’s officers decided to offer shares to customers because they knew institutional investors who normally buy IPOs would be reluctant to buy Vonage stock. Vonage has consistently lost money and has never been profitable.

    • athos77@kbin.social
      0·
      9 months ago

      Oh, ouch! If this is similar, it’s a bit ironic that they’ve pissed off the people who would’ve been most likely to invest in the IPO.