Yippee.com is an online consumer review and recommendation site. Its business model focuses on the number of Twitter followers it has in a variety of categories. In preparation for its IPO, Yippee claimed it had over 10 million followers across its categories in its registration statement and prospectus. Based in part on these figures Yippee conducted a successful IPO. After Yippee's IPO, an investigative journalist discovered that nearly one-third of Yippee's Twitter followers are fake. Yippee's Vice President of Marketing had contracted with a company that generates fake Twitter followers using automated programs (bots) and overseas college students. Yippee's top executives were unaware of the VP's actions. Shareholders, however, sued Yippee's executives for securities fraud. The shareholders will most likely win, because executives are strictly liable for any misstatements of fact regarding their corporation's stock. lose, because investors assume all risks when they purchase IPO stock. Owin, because the value of Yippee's stock was based on false information. Olose, if Yippee's executives can show that after a reasonable investigation of the number of Twitter followers, they had reason to believe and did believe that there were no misstatements or omissions of material fact in that portion of the registration statement.

Yippee.com is an online consumer review and recommendation site. Its business model focuses on the number of Twitter followers it has in a varlety of categories, In preparation for its IPO, Yippee claimed it had over 10 million followers across its categories in its registration statement and prospectus. Based in part on these figures Yippee conducted a successful IPO. After Yippee's IPO, an investigative journalist discovered that nearly one-third of Yippee's Twitter followers are fake. Yippee's Vice President of Marketing had contracted with a compary that generates fake Twitter followers using automated programs (bots) and overseas college students. Yippee's top executives were unaware of the VP's actions. Shareholders, however, sued Yippee's executives for securities fraud. The shareholders will most likely Win, because excutives are strictly liable for any misstatements of fact regarding their corporation's stock. lose, because investors assume all risks when they purchaso tpo stock. win, because the value of Yippee's stock was based on false information. Tose, if Yippec's exccutives can show that after a reasonable investigation of the number of Twitter followers, they had reason to believe and did believe that there were no misstatements or omissions of material fact in that portion of the registration statement