Question
A startup we know after going bankrupt received threats from an investor that he would file criminal fraud charges if his money wasn't returned. As far as we know the startup didn't do anything illegal, the revenue simply didn't pick up and the business went downhill. Their lawyer didn't seem to be worried about the fraud charges. So, is this an actual risk for startup entrepreneurs or was the investor just 'talking tough'?
Answers: 1 public & 0 private
It depends on the representations they made. If they misrepresented material facts which they knew were misleading and false, this can supersede a contract and any waivers. There's always risk for anyone to get sued. Even if you do nothing wrong.
Recent questions
I sometimes see questions on forums like Quora about how to stop people stealing your invention i...
4 5564 2I am looking for useful sources on protecting copyright. I am in the process of writing a book ba...
3 6352 2What is the current wisdom on compiling news feeds on a third party website so far as copyright i...
1 4116 0This might be a silly question but I’m a bit confused by ‘prior disclosure’ as it applies to pate...
2 4977 1Do you have a question about your invention or intellectual property?
Search the questions below or post your enquiry to one of our experts via Directory.
(User questions are no longer posted publicly on this page.)
