At a very minimum, Fred and Sally would be required to disclose the
pending legal case against them from Tammy before offering stocks
to the public. I think that it would be relatively easy for them to win
the case against them in a court of law. Tammy was a delivery driver
and did not possess any other real qualifications to become the
company's bookkeeper. Ted clearly has higher qualification when it
comes to the bookkeeping position. Simply put, they hired the
person best for the position and it had nothing to with sex of that
individual. I would advise holding off to go public until this case is
complete. It may scare away stockholders knowing it is pending,
especially any type of discrimination case. They may not even look
further into the details of the case and instead skip over the offering.
If you wait until the litigation is complete there would be nothing to
disclose and investors may be more likely to purchase stocks.
