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12-17-2015, 04:53 PM #1Newbie
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ENDURANCE INTERNATIONAL GROUP gets served with subpoena
SEC Investigation
Endurance International Group Holdings, Inc. ("Endurance") received a subpoena dated December 10, 2015 from the Boston Regional Office of the Securities and Exchange Commission (the "SEC"), requiring the production of certain documents, including, among other things, documents related to Endurance's financial reporting, including operating and non-GAAP metrics, refund, sales and marketing practices and transactions with related parties. Endurance will fully cooperate with the SEC's investigation. Endurance can make no assurances as to the time or resources that will need to be devoted to this investigation or its final outcome, or the impact, if any, of this investigation or any proceedings on Endurance's business, financial condition, results of operations and cash flows.
Ref:
http://biz.yahoo.com/e/151217/eigi8-k.html
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12-17-2015, 05:38 PM #2Newbie
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From:*https://www.bostonglobe.com/business...DwN/story.html
The companies disclosed the Dec. 10 subpoenas in documents filed this week with the SEC. Both said they would fully cooperate with the investigations.
“We believe our published reports continue to be complete and accurate in all material respects,” said an Endurance spokesman, who also said the company still expects the deal with Constant Contact to close on schedule.
Constant Contact did not respond to requests for comment.
Constant Contact also reported that it faces a class-action lawsuit related to the deal with Endurance. The suit, filed in Delaware Chancery Court on Dec. 11, says that the company’s directors failed in their fiduciary duties to shareholders by selling the company at too low a price.
Such lawsuits are routinely filed during acquisitions, said Ilya Grozovsky, senior equities analyst at National Securities in New York. “The payday is for the lawyers more than any shareholders,” Grozovsky said. “My guess is they’re just digging for straws.”
But Grozovsky said the SEC investigation “is not standard practice. That the SEC has asked for this is a little bit unique.”
Endurance plans to pay for Constant Contact with money borrowed from banks. Its spokesman said that as of now, there’s no reason to think the SEC investigation will interfere with the financing arrangements. ”We can’t speak for the banks on their position or view,” the spokesman said, “but at this time we have no reason to believe that this information will affect the availability of the commitment.”
Endurance’s stock closed at $11.20 Thursday, down $1.81, or 14 percent. Constant Contact stock closed at $28.69, down $1.45, or 4.8 percent
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12-17-2015, 08:26 PM #3Disabled
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EIG Subpoenaed
I'm not sure if anyone saw this yet. Since I'm too new on this site, I can't post the link.
biz.yahoo.com/e/151217/eigi8-k.html
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12-17-2015, 08:42 PM #4
Interesting development indeed!
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12-17-2015, 08:43 PM #5Web Hosting Master
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EIG said that their calculations weren't accurate for reporting monthly recurring revenue $/customer last quarter.
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12-17-2015, 09:32 PM #6Web Host Reviewer
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This honestly does not surprise me much. EIG has been pissing off a lot of people in the past 12 months. Something like this was bound to happen. They've always had oddities in operation, and going public was probably the worst move they ever made if they had wanted to keep doing things their way (the unethical wrong way?)
It's a shame that Gotham shot itself in the foot with their report. There was a lot of accurate financial/operational info in there, but they added a lot of bogeyman (terrorism) crap that got it wholesale discounted. That was really dumb on their part.
We'll see what happens here.
Odds are they get fined a few million, and it'll be business as usual. What I'm curious to see is who/what they scapegoat.|| Need a good host?
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12-17-2015, 09:46 PM #7
More information about EIG from the Wall Street Journal.
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12-17-2015, 09:55 PM #8
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12-18-2015, 05:47 AM #9Moving the Web Forward
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Looks like this is specifically related to the acquisition of Constant Contact. Curious to read what the complaints are in regards to sales tactics. However this does not appear to be related to any of the web hosting companies owned by EIG (at least not from what I read).
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12-18-2015, 12:18 PM #10Web Hosting Master
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Sorry, but have to do a friendly correction. They've been pissing people off for a number of years. I think my 1st run-in with them was 2009 or 2010...unknowing there would be many more instances after. Once the Borg or Unicron knows of your existence, it's only time before the inevitable shall occur (said in an evil voice). HG was just the icing on the cake.
To answer your statement MechanicWeb-shoss....no, it's not good news. It's like the difference between rich bankrupt and poor bankrupt.
At EIG's level, lawsuits and bankruptcy just means shuffling around money through different hands, and making more from media mention.
At a normal persons level, lawsuits and bankruptcy means you are now broke and borderline homeless with no money to shuffle.
It does seem to be a classic swoop in and "save" a company in trouble situation like HG's attempt to have their own billing system.
It would be interesting if all other EIG matters got dragged into this since they have a less than stellar public reputation.
Unless anything drastically happens, I bet this will be forgotten by the end of the month during the holiday season. Well played distraction.
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12-18-2015, 02:39 PM #11
Well, that's actually right. It just gave them free media coverage. More marketing. At the end, the will be bringing more clients to suffer.
So way people got suffered from there service, customer support, is there no law that can cover this and have them sued? If there is, what their competitors are doing? In some cases it is the competitors who try to gather up voices who are sufferer and help them with filing lawsuits and getting other logistics?
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