The officers are opening themselves up to liability issues by continuing to run a known insolvent business and losing more investor money.
> You are expected to read these Terms of Use because your use of our Site and Service constitutes your agreement to the Arbitration Agreement and Class Action waiver described in Sections 17 and 18 below to resolve any disputes with us.
Another damn arbitration clause. I'm so conflicted about these things -- on the one hand, I'm sure they defer many frivolous lawsuits. On the other, they seem to tilt the balance of power overwhelmingly toward the company/business/service. Do any lawyers out there know if there are situations in which these arbitration clauses wouldn't be legal & binding?
Putting all that aside. What liability? From the government? They most certainly don’t have to worry about lawsuits. Anyone who wins any against them will be in a long list of creditors waiting to collect.
When you fail to supply your customers with the agreed merchandise because you have no money you are bankrupt. Bankruptcy law doesn't allow you to pick and choose who you will pay/supply in hopes you get a last minute break.