

JOBS Act: Things to look forward to (and to dread) - mkramer05
http://news.cnet.com/8301-19882_3-57409949-250/jobs-act-5-things-to-look-forward-to-and-5-to-dread/

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vyrotek
_"Startup CEOs could lose everything. Speaking of lawyers, companies that take
crowdfunding expose their officers to personal liabiilty; they can be sued for
their personal assets. For this reason, many businesses won't open up
crowdfunding rounds unless they absolutely have to. The overall quality of
crowdfunding investments will be lower than it would have been otherwise."_

This seems like a deal breaker to me. Does anyone have any specific insight to
the details of this aspect?

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martingordon
That scared me at first too so I did some research. The CNet article is wrong.
It seems that the personal liability only applies to "material
misrepresentations and omissions made to investors in connection with a
crowdfunding offering".

See
[http://financialservices.house.gov/News/DocumentSingle.aspx?...](http://financialservices.house.gov/News/DocumentSingle.aspx?DocumentID=285426)
(see General Anti-Fraud Provisions section) and
[http://www.dandodiary.com/2012/04/articles/regulatory-
reform...](http://www.dandodiary.com/2012/04/articles/regulatory-reform/the-
impact-of-the-jobs-act-on-do-liability/) (search for above quote).

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joedev
"Crappy IPOs" is the top point for me. This Act only further encourages
unprofitable companies with no real plan-to-profitablity to dress up and hit
the public with over-hyped IPO roadshows. It all becomes about hype vs.
substance. We've seen it all before and it's rediculous that such activity has
now been codified.

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smashing
Are there any companies which are providing expertise in using the JOBS Act to
help startups?

