5 Things Shopify Management Wants You to Know

After Shopify (NYSE: SHOP) reported its third-quarter results, its leadership team shared some important information with investors during the subsequent conference call. Here are the key takeaways for long-term shareholders.

We were targeted by a short-selling troll who made all sorts of preposterous claims. ... I want to correct three key points of misinformation, and just to be absolutely clear, we consulted with outside legal counsel that also categorically dismissed these claims as unsubstantiated. I can definitely state that (1) we do not sell business opportunities; we sell a commerce platform; (2) we comply with FTC rules and consistently inform our affiliates of their legal obligations; and (3) we do not promise merchants success -- far from it. In fact, most of our content is about how hard entrepreneurship is. 
-- CEO Tobias Lutke

Short-seller Andrew Left of Citron Research released a scathing report in early October describing Shopify as an "illegal get-rich-quick scheme" whose marketing practices ran afoul of Federal Trade Commission regulations. The stock was hit hard on the news and has yet to recover fully. Yet Lutke's response makes it clear that Shopify and its lawyers believe that Citron's claims are without merit.

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Source: Fool.com