If the name “OrderUp” sounds familiar, that might be because it’s a popular app for ordering food in Baltimore and elsewhere. Or it might be because they got in trouble for plastering the city with stickers in a guerrilla marketing campaign.
But that sticker drama feels like a distant dream at this point. Last year, Groupon acquired OrderUp in a $69 million deal, making its owners and investors very, very rich. Well, not all of them. According to a lawsuit, three of OrderUp’s early investors were approached by the company’s founder, Christopher Jeffery, in early 2014. He allegedly told them that the start-up was struggling, and recommended that they redeem their investments now–because if they tried to do so later, he might not have the money to pay them back. The investors took his advice–and missed out on the multi-million dollar payday that came the following year. “Like any angel investors, they were hoping to hit a home run. And here they were, about to do that, but the opportunity was taken away,” attorney Robert B. Bernstein, who is representing the investors, told the Sun. Now they’re suing Jeffrey in New York district court.
The moral of the story? Investors beware.
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