Importantly, every public company is not doing this.

Were it a private company, like most startups at this stage tend to be, these lies would not have been securities fraud, I don't think.

IMO this would have been a negative case of misrepresentation were this a private startup, but probably not more than a single standard deviation away from the norm, at least in my admittedly fairly limited understanding of the industry.

When you're from a culture of, well, presenting the best version of the truth possible (startup world), you can get into some very hot water if you play fast and loose as a publicly traded company, and Trevor Milton is finding out.