What is the Price of Poor Due Diligence?
Franchise Fraud Returns 10 cents on the dollar
Elliot Spitzer is rightly regarded as a very tough commericial litigator who extracts very large settlements for the State of New York. But when faced with the standard business opportunity fraud, the AG was only able to extract 10 cents on the dollar.
The lesson here is that the price of poor due diligence, even with the very best litigation team, is 90 cents on the dollar. The purchasers of this franchise lost 90% of their investment. I wonder what they spent on due diligence?
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