Hacker News Reader

This is why Silicon Valley stalwarts like a16z are pushing for an "alternative" stock market. They need a less transparent place to dump this stuff on the bagholders.

This comment is downvoted but I have to agree with this. Rarely, very rarely do these people ever get caught or have to pay back the ill gotten money.

To the point where the business is no longer viable? Very rarely because without fraud it’s hard to hide that in the IPO docs.

No longer viable or barely viable is a fine line. Here are a few cases: https://www.washingtonpost.com/business/the-debt-laden-lbo-t... https://www.bloomberg.com/news/articles/2006-08-06/buy-it-st...

Edit: It's not fraud, they disclose it all but a lot of people are fooled by the low IPO price, even though the business is loaded with debt and has a gazillion shares issued.