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A comment on GameStop missed out on capitalizing on the Reddit rally. Parent comment

Re:GameStop missed out on capitalizing on the Reddit rally by NoOneNew on Thursday February 11, 2021 @08:17AM (#26101126)
As much as I am on the WSB side of this fiasco, I still agree it was mature and smart for Gamestop not to make an opinion or jump on this in any form. It would have been a legality mine field for them to cross and properly capitalize on. Public companies are under a lot more scrutiny than private ones. Dont assume inaction was just because they're stupid. Theres zero wrong with picking and choosing battles that you know you can win. They probably saw this as so drastically out of their control, it would be too difficult not to get swept up in the turmoil.

But I do believe they made some good on the momentum, just not publicly. Probably got some more exec's from other companies willing to come aboard that they're still negotiating with.

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Re:GameStop missed out on capitalizing on the Reddit rally by JumpCrisscross on Thursday February 11, 2021 @08:31AM (#26101266)
> it was mature and smart for Gamestop not to make an opinion or jump on this in any form

GameStop couldn’t. They were deep into the quarter and had non public financial information. The companies that could sell stock did.

If GameStock could have sold stock and didn’t, and if I were a shareholder, I’d sue. They have an obligation to current stockholders. And a duty to be honest to new ones. Nobody bought their shares at inflated prices under duress.

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Re:GameStop missed out on capitalizing on the Reddit rally by spoonjim on Thursday February 11, 2021 @11:27AM (#26103461)
Your lawsuit would be thrown out, there is no obligation in US law to issue stock in this scenario. "Fiduciary duty" has been quite well-defined by courts and this isn't even in the same galaxy.
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Re:GameStop missed out on capitalizing on the Reddit rally by JumpCrisscross on Thursday February 11, 2021 @11:33AM (#26103569)
> Your lawsuit would be thrown out

It would be a disclosure lawsuit. Lesser claims have been settled. The bar for throwing out cases is pretty low.

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Re:GameStop missed out on capitalizing on the Reddit rally by andrewon on Thursday February 11, 2021 @09:08AM (#26101625)
They already had shares that scheduled to sell but decided not to execute. It seems like the advice I always got from my company's legal department when I asked if it was ok to something: don't do it.
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