OrderUp founder Chris Jeffery could be facing some of his earliest investors in court over their claims of being tricked out of a big payday.
The New York Post is reporting that Jeffery told four investors in 2014 that OrderUp could go out of business:
“Jeffery reported falsely that competition . . . was threatening the continued viability of OrderUp,” the investors charge in the suit.
If the financing “angels,” Charles Lipson, Doug Potolsky, Samuel Cooper and Steve Israel, didn’t redeem their original investments right then, Jeffery allegedly warned, “the company might not be able to pay them anything at all within a year.”
OrderUp was acquired by Groupon for nearly $70 million in July 2015.