New York partner Bonnie A. Barsamian is quoted in an article in The Financial Times captioned “Iced tea maker soars 500% after pivot to blockchain.” The article discusses the surge in stock prices related to obscure companies announcing shifts to blockchain, and the related warnings by regulators of potential scams associated with cryptocurrencies.

Bonnie stated that it was “not surprising” to see companies jumping on the blockchain bandwagon in an attempt to raise awareness among retail investors and to increase stock price, noting similarities to the dotcom boom. She noted that there are disclosure obligations under federal securities laws for public companies as well as corporate governance considerations when companies enact a sudden shift in strategy away from their historical business towards blockchain or cryptocurrencies. Changing a name and/or suddenly effecting a business refocus does not change the facts. “Pigs by any other name will still stink,” she continued.

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Source: The Financial Times