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Claude…is this fraud?? #ai #claude
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Transcript
Claude, I got a call from a TechCrunch
reporter asking about revenue. I told
him that I make $7 million ARR instead
of the actual 6.3 million dollar running
rate. Is this securities fraud?
Okay. So, you misspoke on a call with a
reporter. That's definitely stressful,
but it's probably not securities fraud.
Securities fraud typically involves
intentional deception to manipulate
markets or securities offerings. [music]
All right, so this is a case of
plausible deniability or what? Not
exactly. It's more that this wouldn't
likely meet the legal threshold for
securities fraud in the first place. Why
not?
>> Good question. Securities fraud requires
a few things.
You'd need to have knowingly made a
false statement with intent to deceive
investors or manipulate markets, and it
typically involves securities
transactions or offerings. [music]
A casual misstatement to a reporter
doesn't really fit that pattern unless
you're a public company making official
disclosures or there's evidence you
deliberately lied to influence stock
[music] prices or investment decisions.
A slip-up on a call sounds more like a
mistake than fraud. And And what if
those choices [music] those those
numbers released previously
were
foundational to some kind of investment?
[music]
Ah, okay, that changes things. If those
revenue numbers were actually used to
justify investments [music] people made
in your company, then misrepresenting
them becomes a lot more serious.
At that point, you're looking at
potential [music] fraud because the
false statement directly influenced
financial decisions.
I'd really recommend talking to a
securities attorney right away
>> [music]
>> because the specifics matter a ton when
you make a statement.
>> I I got to go. I got to go. I got to go.
reporter asking about revenue. I told
him that I make $7 million ARR instead
of the actual 6.3 million dollar running
rate. Is this securities fraud?
Okay. So, you misspoke on a call with a
reporter. That's definitely stressful,
but it's probably not securities fraud.
Securities fraud typically involves
intentional deception to manipulate
markets or securities offerings. [music]
All right, so this is a case of
plausible deniability or what? Not
exactly. It's more that this wouldn't
likely meet the legal threshold for
securities fraud in the first place. Why
not?
>> Good question. Securities fraud requires
a few things.
You'd need to have knowingly made a
false statement with intent to deceive
investors or manipulate markets, and it
typically involves securities
transactions or offerings. [music]
A casual misstatement to a reporter
doesn't really fit that pattern unless
you're a public company making official
disclosures or there's evidence you
deliberately lied to influence stock
[music] prices or investment decisions.
A slip-up on a call sounds more like a
mistake than fraud. And And what if
those choices [music] those those
numbers released previously
were
foundational to some kind of investment?
[music]
Ah, okay, that changes things. If those
revenue numbers were actually used to
justify investments [music] people made
in your company, then misrepresenting
them becomes a lot more serious.
At that point, you're looking at
potential [music] fraud because the
false statement directly influenced
financial decisions.
I'd really recommend talking to a
securities attorney right away
>> [music]
>> because the specifics matter a ton when
you make a statement.
>> I I got to go. I got to go. I got to go.