ENDURANCE INTERNATIONAL GROUP gets served with subpoena

Discussion in 'Industry News' started by zafouhar, Dec 17, 2015.

  1. zafouhar

    zafouhar Member

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    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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    Now this is interesting how this will develope.
     
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  2. drmike

    drmike 100% Tier-1 Gogent

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    DEATH TO EIG.
     
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  3. zafouhar

    zafouhar Member

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    Its coming. 
     
  4. zafouhar

    zafouhar Member

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    From: https://www.bostonglobe.com/business/2015/12/17/burlington-tech-company-subpoenaed-sec/mwUzD4B408YTbK5djsNDwN/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
     
    Last edited by a moderator: Dec 17, 2015
  5. drmike

    drmike 100% Tier-1 Gogent

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    But Grozovsky said the SEC investigation “is not standard practice. That the SEC has asked for this is a little bit unique.”
     
  6. zafouhar

    zafouhar Member

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    Definitely, there's a lot going on. I think this is just the beginning of the end of EIG.
     
  7. ChrisM

    ChrisM Cocktail Enthusiast Moderator Verified Provider

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    Wohoo!! About time, this should have happened a couple years ago.
     
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  8. zafouhar

    zafouhar Member

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    I like the enthusiasm lol :p generally everyone seems happy about this lol
     
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  9. zafouhar

    zafouhar Member

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  10. Munzy

    Munzy Active Member

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    EIG shouldn't be confused with EGIHosting.com.


    EIG hosts things such as hostgator, ipage, etc.
     
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  11. KuJoe

    KuJoe Well-Known Member Verified Provider

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    If you believe that article then I feel bad for you. Anonymous people wrote that fake (and illegal) article to make money on stocks (they even said so in the article). They've done that for other publicly traded companies and after a lot of wasted time and money the articles were proven false. Total BS.
     
    Last edited by a moderator: Dec 17, 2015
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  12. drmike

    drmike 100% Tier-1 Gogent

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    EIG no doubt is a mess.  It isn't just Gotham with that report saying it.  I prior took position that Gotham likely holds positions in companies and is playing the drama for gain, which I entirely disagree with.


    Accounting isn't my interest. But the way EIG does their numbers have been screamed about over and over for year by all sorts of folks.


    Remember, I said it would be a shame when EIG got investigated. Here we go.  This is the tip of more to come.
     
    Last edited by a moderator: Dec 17, 2015
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  13. zafouhar

    zafouhar Member

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    Although like everything nothing can be 100% accurate however as an ex-Staff member of two EIG brands there is quite a lot of truth in that article. The article is right at the point for many things, and for the rest of the points I just don't have information.


    Outages, hosting malware, hosting customers banned at OFAC (we're talking about thousands), slow services, servers overloaded are the norm for EIG brands. I can characterize EIG is a safe haven for countries banned at OFAC with little to absolutely no action when someone is located. Plus the amount of PayPal phishing sites (and other site banks), each of their servers contains several hundreds that they are aware however do not have the time to remove them.
     
    Last edited by a moderator: Dec 18, 2015
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  14. HN-Matt

    HN-Matt New Member Verified Provider

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    Yikes. Hope they don't sick the OVH Validation Team on them.
     
  15. drmike

    drmike 100% Tier-1 Gogent

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    OVH team would be more competent.
     
  16. drmike

    drmike 100% Tier-1 Gogent

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    Here's my call on EIG.


    They'll buckle, eventually.  They will settle with SEC for some fixed amount, and promise to adjust their accounting practices.  Same BS reason about focusing on business and more feasible thing to do.. All while not admitting fault.
     
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  17. Nerdie

    Nerdie New Member Verified Provider

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    This will definitely be interesting. *grabs popcorn*
     
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