Startups Overstating Progress

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Startups Overstating Progress

SAN FRANCISCO, CA – Theranos is in the news for overstating what it’s products/services could do, but it is not the only startup accused of overstating progress to keep cash flowing. Drone maker Lily was sued by the SF District Attorney for overstating what it’s throw-and-follow-you drone could do, prompting the company to refund pre-order money and ultimately file for bankruptcy protection. And, just recently, a water bottle company was sued.

Three plaintiffs: Winston Ibrahim; S.A. Ibrahim and Alan Sheriff are suing: Jay Parekh; Aakash Mathur aka Kash Mathur; Alexander Mittal; Arjun Srinivas; and Michael Young alleging that they induced plaintiffs to invest in Hydros, a filtering water bottle. Plaintiffs say defendants falsely touted the bottle as being able to filter water at higher rates of flow than competing filters like Brita even though the technology did not work.

This blog reports on cases filed in and around the San Francisco Bay Area. The statements made are based on the allegations in court-filed documents. Allegations are just accusations, and may or may not be true.
The authors of the blog are attorneys at the San Francisco litigation firm, Wood Robbins, LLP. If you have a legal issue, send them an email. If they cannot help you, they will try and point you in the right direction.

Source: Investment