Vote Now | Support BCG or GME?
Boston Consulting Group, one of the world's largest corporate advisers, has sued $GameStop(GME.US$ over what it called $30mn in unpaid bills.
Meme-stock company "refused to pay significant amounts" for help on transformation, complaint says.
The consulting group said in a complaint filed in US federal court that it began working with GameStop in 2019 to help "enable a corporate transformation" that would improve its flagging fortunes.
BCG said that GameStop was floundering when it took on its assignment, with shares that had fallen to $3.32 by August 2019 from a previous high of $55.
BCG also claimed credit for a revamp of GameStop's loyalty program that increased membership signups by more than 40% and generated a profit improvement of $73 million, "well beyond the original expectation."
GameStop said it's "proud" it no longer uses the consulting group's services.
"We do not believe it is in our stockholders' best interests to pay the tens of millions of dollars sought by BCG, especially given their seemingly meager impact on the company's bottom line," GameStop said in the statement.
After BCG's lawsuit, members on the Reddit social media platform cheered on the company.
"I applaud GME [GameStop] for looking out for my 28,800 shares," one Reddit user wrote.
"I applaud GME [GameStop] for looking out for my 28,800 shares," one Reddit user wrote.
Mooers, should GME pay the bill? Which company do you support?
Source: Bloomberg, Financial Times
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z utterback : Why would you pay the company for failure? If their guidance was successful they wouldn’t have had to bring Ryan cohen in and fire most the people in upper management. Maybe the failed management team should pay BCG since it was their idea to use them.
Jack1212 : Pay, maybe at a discount and move on… focus on business instead of litigation
DanielWu is me : Why soar？
SimpleIndex : Quote Reddit: We refused to have consultants work on our turn around plan when they are in bed with the people who have a vested interest in shorting our company into the ground. Your honor should someone really have to pay a thief and allow them to learn how to steal money from you.”
Hererophytee : GME SUCKS…
don’t understand why so many people support it
CitadelAir Hererophytee: Cool story bro
RickSanchez69 Hererophytee: You should short it
Bawlz09 : this is all a load of crap -Lmfao ... bro my dude Ryan would have paid that shit out of pocket rather than that lol..
I'm js . perfect timing eh? fucking retarded market makers.
eh you know I've got Kenny G on spotlight .. I'll just say. wifi Mac addy
Ferocious Voadkyn : I have some doubts about “consulting” companies and their impact on the bottom line of their client companies. However, if GME contracted with them and promised fees to be paid based on BCG’s performance/ideas, then it is owed. Hopefully, they can reach a settlement quickly and move on from this.
LuvKitty :
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