Read Case Study 3 in the Final Project Guidelines and Rubric, and discuss the current
or potential legal and/or regulatory issues apparent in this fact pattern that might impact
a public offering. Actively engaging with your peers and instructor will help you complete
the remaining critical elements for the full case study, due in Module Seven.
Case Study 3
Both Fred’s family and the business have rebounded from their prior issues. Jane
sought counseling for her gambling issues and has worked hard to mend her
relationships with the family. Prior to cashing the forged checks from Jane, Don was
struck by lightning and experienced a spiritual enlightenment. He willingly returned the
checks to Fred and Sally and promptly joined the Peace Corps. Likewise, when the
church found out the donated check was a forgery, it was immediately returned. Bob’s
wife (also Sally’s best friend) found out about Bob’s online sabotage and promptly
remedied the situation. Once Fred’s Miracle Cough Syrup was back on track, the
company’s growth was exponential. Featured on a widely viewed talk show starring a
prominent doctor, online orders and demands from big-box chains nationwide
skyrocketed. Fred and Sally have been told that now would be an ideal time to take
Fred’s Miracle Cough Syrup public. The only distressing issue at hand involves Tammy,
a local girl who had been working as a delivery girl for the company. She applied for
Jane’s former job as bookkeeper. Fred and Sally hired Ted, an experienced accountant, instead, and Tammy has filed a claim of sex discrimination against the company and
Fred personally. Fred and Sally are seeking your advice regarding Tammy and the possibility of taking the company public.
