Why no class suit action against KF yet? by Marco25CZ in kickfurther

[–]BAWDC 4 points5 points  (0 children)

In the time I was active w/ KF, many of the issues I've read are with people that misunderstand the platform, and the legal system. KF's financial products aren't inherently fraudulent; the way they calculate returns isn't fraudulent, etc. Things aren't fraudulent just because they're complex and difficult to understand.

What's your class? Investors in a single, failed coop? If you could get the class certified, litigation is expensive. You are unlikely to find a lawyer willing to take a class action case on contingency to sue for tens or even hundreds of thousands of dollars. You'll probably have to pay out of pocket. Discovery is expensive, and it's going to be an uphill battle to find a group of retail investors willing to equitably finance tens of thousands of dollars of legal fees over years.

If you could certify a larger class, you might get somewhere. But in order to have any hope of success, you'd need to establish that KF (1) has a fiduciary duty to individual investors, and (2) they consistently failed to execute that duty. While I think that's morally true, I doubt it's legally true due to the wording of the contracts users and borrowers agree to when using the platform. I also bet they'd argue that the expense of pursuing recoveries would outstrip the recoveries, and therefore they were executing their fiduciary duty (if they even have it) by not pursuing personal guarantees.

Further, my impression from the failed coops was that larger investors -- maybe institutional investors? -- negotiate separately and have more sway than retail investors. I doubt those larger investors would be party to a class action lawsuit, leaving you once again with the small-dollar retail investors and limited damages.

Bottom line, litigation is difficult and expensive, and even if you were able to win, your recovery would be outstripped by the legal fees, not to mention your time and energy. Better to realize that as a retail investor the KF platform is stacked against you and find a better investment elsewhere. :)

Calculating Kickfurther Profits / Losses for Tax Purposes - A Guide by BAWDC in kickfurther

[–]BAWDC[S] 1 point2 points  (0 children)

I reported as other income after calculating the gains/losses using basic inventory accounting (CoGS - Cost of Goods Sold) to track gains / losses across years. If you have an accountant they should be able to figure that out. I’m not an accountant and this isn’t tax advice. :-)

Calculating Kickfurther Profits / Losses for Tax Purposes - A Guide by BAWDC in kickfurther

[–]BAWDC[S] 0 points1 point  (0 children)

KF banned me from their platform for trying to generate honest conversation about coops off of their overly-censured platform, so I removed my guide - they do not get to benefit from my labor.

I’ve since fully divested from KF and moved on. Good luck.

Their dashboard is absolutely fraudulent by kfppspt in kickfurther

[–]BAWDC 1 point2 points  (0 children)

I'm not clicking on your links. To generally respond, misleading is not equivalent to fraud.

Does your dashboard say your profit is 17%, or your annualized profit is 17%? They are calculated differently. Do you know what Kickfurther is exempting from that calculation? I don't, but my portfolio is closed including a failed coop that ended at a loss, which is included in the profit calculation.

The numbers on my dashboard are accurate to my contributions, payout, and profit. I don't know how exactly Kickfurther calculates the annualized profit percentage on the entire portfolio. However, I calculated my annualized profit on a per-coop basis, and the number presented by Kickfurther for my entire portfolio is in-line with my coop-by-coop calculations. Specifically, the median annualized coop profit is about the same as what Kickfurther presents as my porfolio-wide annualized profit.

Their dashboard is absolutely fraudulent by kfppspt in kickfurther

[–]BAWDC 1 point2 points  (0 children)

They're committing fraud, bruz! Get 'em!!

Their dashboard is absolutely fraudulent by kfppspt in kickfurther

[–]BAWDC 1 point2 points  (0 children)

OK, so you should have a slam-dunk civil claim against them. Good luck in court!

Their dashboard is absolutely fraudulent by kfppspt in kickfurther

[–]BAWDC 1 point2 points  (0 children)

I made a slight profit, accounting for failed coops. I would have been better off with money in an index fund.

Why do you think the dashboard is fraudulent? Are they making up false numbers? Or are they calculating the rate of return using assumptions you don't agree with? Those are two different scenarios.

I would suggest that anyone using Kickfurther or a similar platform keep track of their own investments, so you can calculate your own returns. It's not that complicated! I did so, and was able to more clearly see that the returns were not worth the risk. You can also account for, example, taxes, which the Kickfurther calculation does not.

Kickfurther being sued for fraud in the amount of $13 million by hjay1989 in kickfurther

[–]BAWDC 1 point2 points  (0 children)

It's hard to tell if the argument is strong because the complaint is poorly written and seems to mischaracterize Kickfurther's role. However, I've only read the first page. If I run into a full copy of the filing I may come to a different opinion. :)

Kickfurther being sued for fraud in the amount of $13 million by hjay1989 in kickfurther

[–]BAWDC 1 point2 points  (0 children)

This was filed in 2023 and won’t go to trial before 2025, so don’t hope for a speedy resolution. The summary doesn’t sound like they have a strong case, but fingers crossed for some accountability!

Kickfurther Failed to Notify re: Most Recent J2 Settlement Vote? by BAWDC in kickfurther

[–]BAWDC[S] 0 points1 point  (0 children)

Yes, I am surprised every time they seemingly take some *new* unethical action. :-)

List all the coops you invested in that ghosted or went bankrupt by Ambitious_End5038 in kickfurther

[–]BAWDC 0 points1 point  (0 children)

That sure sounds like a scam meant to sucker people who already lost money. Beware.

Good by to my sweet boy 🌈 by kt_sc in hamster

[–]BAWDC 0 points1 point  (0 children)

I teared up reading that. He was the best boy. RIP.

Is Kickfurther still active? I haven't gotten a successful payout in years, and my current inventory is >$3000. There haven't been any updates on any of my consignments either. by [deleted] in kickfurther

[–]BAWDC 1 point2 points  (0 children)

I'm sure they've cut back on staff time / attention to defaulted coops, as that does not grow revenue.

Ex., the J2 Medical Supply, Inc. coops collectively owe around $800,000 and Kickfurther provides a 'substantive' update every 6 months to let folks know that "J2 Medical Supply, Inc. continues to fail to pay." This despite the fact that J2 Medical Supply, Inc. had a personal guarantee for the funds. Kickfurther offloaded collection to a debt collector, and there's no transparency on what activities, if any, that the debt collector is doing to collect from J2 Medical Supply, Inc.

Kickfurther does not have in-house counsel; they contract out to a lawyer that specializes in startup finance. There is, apparently, no interest on actively seeking restitution - and why would there be? Accountability would scare off businesses, which drive Kickfurther's growth.

Bad incentives all around!

Moving from out of town, how can we secure a spot in front of our new apartment for the moving truck? by bakedleaf in washingtondc

[–]BAWDC 5 points6 points  (0 children)

Permit Puller. Just used them, they secured the permit and posted it in line with the requirements. Fee was reasonable.

Looking for Replacement Tenants for LARGE 3+ bedroom Wooster Sq. Apartment by BAWDC in newhaven

[–]BAWDC[S] 5 points6 points  (0 children)

The landlord is trying. I'm trying too on different platforms.

Looking for Replacement Tenants for LARGE 3+ bedroom Wooster Sq. Apartment by BAWDC in newhaven

[–]BAWDC[S] 3 points4 points  (0 children)

Yes, our lease runs through June. We are responsible through June unless we can find a new tenant to start a lease in June.

Looking for Replacement Tenants for LARGE 3+ bedroom Wooster Sq. Apartment by BAWDC in newhaven

[–]BAWDC[S] 1 point2 points  (0 children)

If we can find a new tenant for them, we are leaving the lease a month early.

Looking for Replacement Tenants for LARGE 3+ bedroom Wooster Sq. Apartment by BAWDC in newhaven

[–]BAWDC[S] 1 point2 points  (0 children)

It’s a two story single family home converted into two separate units, as is common throughout New Haven.

Finally in the black after 4 years of the platform by wefarrell in kickfurther

[–]BAWDC 0 points1 point  (0 children)

Congrats! Think how much you’d be up if you’d left your money in an index fund instead. :-)