Why I Will NOT SUE GOPRO CORPORATION
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No, I will not pursue legal action against GoPro. I received paperwork yesterday to do a class action lawsuit against GoPro corporation. I will not be joining the class action lawsuit and I want to explain why.
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Well guys, last day in the mail, I just received a whole bunch of paperwork in regards to a class action lawsuit that I could partake in and basically Sue GoPro corporation for mistakes that were made by the management team. Okay, this lawsuit alleges basically they artificially inflated the price of GoPro and that mistakes were made by Nick Woodman.
Brian McGee and other executives at the company, okay, and neither say this was a stock I lost the most money by far away of any stock ever in my life, nearly $40,000 we lost in GoPro, okay, it was a substantial amount of money. And I kind of want to talk about why I’m actually not interested at all, in being part of this class action lawsuit, I’m gonna given kind of the four reasons why I don’t want to be part of this.
And then I’m going to share with you guys if it ever makes sense to be part of one of these class action lawsuits against a company. So let’s say you invest in a stock and that stock goes down dramatically and the company kind of fails like GoPro did not go bankrupt, a GoPro lost a substantial amount of their share price.
Okay, so I kind of want to like share after I’m done giving my four reasons on when maybe you should partake in something like this. Okay, so I hope you guys get value out of today’s video, let’s get into it. Reason number one, why I will not be part of this lawsuit is I’m just so over and done with the whole GoPro thing like I sold out of all my shares and option contracts and different things.
I hadn’t GoPro and anything related to GoPro in January 2018. And that was me kind of like cleaning my hands that situation, just saying we made a really bad mistake. And it’s time to move on in life. Like you can’t keep like, like, like, you know, worrying about these things constantly.
And I have friends who lost money in different investments over the past, you know, decade or two doing different things with you know, trust deeds and different things like that, right. And they lost money or they they invest in some oil wells, you know, so they got some paperwork in the mail.
And they were like, all these oil wells, because these can make a lot of money, they put money in that. And now they’re still like trying to find that money somehow and like Sue or something like that. It’s just so ridiculous. I feel like in life, like if you make a bad investment, which I made a bad investment choice with GoPro Corporation, like you just have to pay the price.
And I had to pay the price. It was nearly $40,000 was the price I lost in GoPro. And it was a very expensive lesson but I like I’m just over it like you there’s some life, you just have to move on, you make a bad mistake, you purchase a house, let’s say at a really bad price or something like that.
And you have to sell it at a loss or foreclose on it or whatever like late sometimes in life, you just make a bad investment decision. And go pro was a very bad investment decision by far and away the worst investment decision of my life. And I’m just like over it, like I’ve been over and so like to go back and try to like do a lawsuit or something against them.
It’s just like, it’s just like going the wrong way. In this whole situation like I’m done like I’m over it like it is what it is the money’s lost. The money’s gone like it is what it is, like I moved on, we’ve moved on to way bigger investments I learned my lesson is what it is guys. So that’s reason number one, I’m just done an over.
Okay, let’s get to number two. Reason number two has to do with the management team. And a lot of the lawsuit kind of goes after the management team and where they purposely trying to get the share price up and things like that. Okay, here’s my view of the executive team over there Go Pro, okay.
The fact is with that management team, they were incompetent. In my opinion, they were not malicious. There’s a difference between incompetence, and purposely trying to get a stock price to go up or having malicious intent around something. Okay? Nick Woodman and co over there is the most incompetent management team I’ve ever come across in a company, okay, they failed at everything.
And they blew through like $2 billion in the course of a few years, with literally nothing to show for it. Okay, they went after like the entertainment sector, they were like, going to become an entertainment company. They completely failed on that, okay.
They went after drones, and they completely fell out, though they were falling out of skies, literally, like they completely failed at that like, like everything they were doing, they were just completely incompetent. There were at least a year behind on camera technology on where they should have been this company failed and failed and failed.
Because of incompetence at the management team, not because they were purposely like, maliciously, in my opinion, like trying to get the stock price to go down or go up in a certain amount of time or something like that. So in my opinion, it was just a really bad management team, who literally like like they couldn’t, they couldn’t find anything to work with this company, the drone, the drone should have been a success.
And the drone was like a year and a half delayed. The drone was like a year and a half delayed from when it should have been out and then it comes out and it’s falling out of the sky. And it’s like my goodness, GoPro litter. This company could do nothing, right.
The management team was just completely incompetent, but I can’t say Oh, yeah, they were they were purposely like fudging numbers or something like that, or trying to make things look better than they were. They were just they were just really incompetent management team. Bottom line, they blew through so much money in such a quick amount of time, and they started taking massive losses.
And you know, that’s why the stock fell from when it first went IPO the stock got way too high. When I first started getting involved with that stock, it was like around $20 or so and then it dropped into like the teens like $15 $13 and then I started buying heavier then it started to get to like the single digits 987 that I started buying you You know, like, even heavier, I started buying in the stock.
And needless to say, like, like throughout that time, like, like the writing was kind of on the wall around the management team. But I was just kind of like, I just believed in the hype and the GoPro hype, and that they could come out with a successful drone. And like literally, they couldn’t do anything, right. Like the company failed at everything,
I could go through a laundry list of like failures. Okay, so that’s the bottom line there. If I if there was something like, like, the $2 billion that like they spent on entertainment, like if that went to somehow like Nick Woods men’s pockets, I would say, Okay, yeah, maybe we should file a lawsuit, but it didn’t like he, like they tried, they just feel that everything is connected. Number three.
Reason number three, why I will not partake in this lawsuit. It’s basically this was a very expensive lesson, but a lesson that I needed. Okay, it was nearly a $40,000 lesson, but it was honestly a lesson I needed. So I initially bought GoPro as like a speculative stock.
And then I built it into my biggest position, which was my worst mistake I made. Okay. And this was a lesson I needed to learn. You don’t build an unprofitable company into your biggest investment. And that’s what I did with GoPro. Okay, so if you asked me, would I rather learn this lesson when I was you know, when I was invested in that stock?
I was 2526 years old? Or would I rather learn that lesson when I’m 4546 years old. And I would say I would much rather learn it now. Right? Also, because I’m in the position I am where I teach people, it’s good that I had to go through that, because now I advise people like if you’re going to make you like your biggest investments, they need to be very profitable companies that are very well run, have very good management teams and have proven business models.
Don’t ever make one of your biggest investments, a company that doesn’t have a proven management team, and is an unprofitable company, which is what GoPro is. Okay, so I learned a very expensive lesson, but I’m happy I learned it. Because if I would have made that mistake now, or I would have made that mistake 10 years from now or 20 years from now, it like the amount of money I would have lost would have been compounded by a lot.
Okay, that would have been a six figure seven figure loss versus a 30 or $40,000 loss, they when I was 2526 years old, or whatever. For that reason, I’m kind of thankful I got involved with the stock, okay, and let it always be lessons you guys, like if you’re, if you want to spec stock, that’s fine.
Like GoPro was like, it was fine. It was a spec stock, it was like, oh, man, maybe there could be a big company someday, and create drones and entertainment business and blah, blah, blah, right. And that was so cool. But it was still speculative, it was a speculative company, it should have stayed that way, not become a massive investment of mine.
Okay, so let that always be less than you guys in relation to any company that is unprofitable. And that doesn’t have a proven management team and those sorts of things. You want to buy it as a spec play, that’s fine, like do it you’d like you can do what you want to do. But building into your biggest position is highly, highly risky. And you’re probably going to get torn up from that, guys.
Okay, let’s get into number four. The last one reason number four, while I will not partake in the lawsuit, and this is the smallest reason of the bumps like the other ones are the main reasons. So it’s very small, but at the same time, like the payment is a joke for the payment for that. Okay, if we win that I would get for us four to nine cents per share.
49 cents per share. What am I going to do go buy some tissues at Walmart to wipe away my tears? Like what does that matter? Like 49 cents a share? That’s literally a joke, guys. 49 cents a share? Okay, that payment is an absolute joke. All right. Now let’s talk about a situation where maybe you should actually partake in something like this.
If you feel like you were really misled by a management team. And they were consistently misleading their investor base, that might be a situation and the stock drops huge, right? That might be a situation where it is worth, like, like trying to partake in one of these class action lawsuits.
Or if it’s a situation where it’s like an Enron situation where there’s clear, like intent to get the stock price up at times, a lot of the business fundamentals underlying like, aren’t even there. Or if it’s like a straight up fraud situation where like, let’s say a company is lying on their income statement or something like that are lying on their balance sheet.
And they’re like, Oh, yeah, we did $100 million in revenue in the last quarter. But really, they only did 55 million or something like that, right? If it’s one of those situations where it’s clear today, like management was purposely going out of their way to defraud investors, then it’s absolutely worth, like partaking in a class action lawsuit, even if you get a very small payment from just because of the principle.
Okay, I can’t say that with the GoPro situation, that management team was extremely incompetent, they weren’t going out of their way, at least in my opinion, to say, oh, let’s try to you know, get the stock price up as much as possible or something like that. No, they weren’t in my opinion, they were just highly highly incompetent management team that was trying to be successful, a lot of different things and failed at everything.
Okay? And just because they were super incompetent doesn’t mean I can, you know, throw a pity party and say, Oh, now I want to sue you guys. Like it is what it is. They were just highly incompetent. They made a lot of mistakes, and it cost me a lot of money. A
nd I learned some very valuable lessons that will save me a ridiculous amount of money in the future that I can’t even like quantify. So it is what it is guys. That’s why I that’s why i I will not sue GoPro but like I said if you’re ever in a situation where like it’s clear as day like like you know the the CEO or the CFO or something were fudging numbers or purposely misleading the investor base then you definitely should partake in something like that.
Like I said, not aiming for the money just for the principle on that matter guys So anyways, hope you enjoy this hope you kind of learned you know a little bit about these different situations. These come up a lot in stocks at drop huge, you’ll see class action lawsuits. You know, most the time they’re not worth it most 95 plus percent of time they’re not worth it.
It’s just like some investors are mad because the stock went down so they want to like sue the company or something like that. But there are some scenarios where it does make sense to partake in it and it does make sense to you know, hold management accountable and hold that company accountable if they purposely misled the investor base guys, so hope you enjoyed this as always make sure to smash that thumbs up button. Thank you for watching and have a great day.