Based on the information given Fred's Miracle Cough Syrup (FMCS)
got lucky and its major issues miraculously disappeared. The
company is booming and looking to expand but releasing an IPO is
like a first date. On a first date you want to set your best foot
forward to your date (investors) to maximize investor confidence of
the company in the future. To obtain the maximum evaluation of the
company the best approach for FMCS is to keep the IPO secret and
resolve the lawsuit quickly. A subject matter expert in the field could
find get a quick resolve to the lawsuit necessary to FMCS's growth as
advised to Fred and Sally to taking the company public. So the IPO
would brings maximum investor confidence/return if it does not have
a pending lawsuit upon release. The SEC requires a registrations
statement according to the the text mentioned below to release
pending lawsuits. A lawsuit free FMCS would avoid adding additional
investor doubts that come with buying into an IPO. With the
companies new found publicity with a prominent doctor on the talk
show time is critical to maximizing profit. A through explanation for
the use of funds is imperative to making the IPO attractive and in
compliance with SEC regulations. Resolved problems allow the
company to keep the dirty laundry out of sight and focus on
successes that have been accomplished.
Dynamic Business Law 5th edition McGraw Hill
