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[SuperBanana]

Four South Korean banks filed a lawsuit against Newegg, Inc. on Friday alleging that the City of Industry company, which operates the computer parts and accessories retailer Newegg.com, conspired with a South Korean hardware manufacturer to defraud the banks of hundreds of millions of dollars.

“Moneual then engaged in a classic Ponzi scheme,” said the complaint, which was filed by U.S. law firm Gibson Dunn on behalf of the Industrial Bank of Korea, Nonghyup Bank, Keb Hana Bank and Kookmin Bank.

Moneual, according to the lawsuit, obtained additional financing from the banks backed by more fraudulent purchase orders from Newegg and ASI. The lawsuit alleges that Newegg and ASI received kickbacks for their participation.

The plaintiffs demand a jury trial and monetary damages. The lawsuit alleges that, of the orders Newegg and ASI made to Monseual that were financed by the banks, more than $230 million is still owed.

http://www.latimes.com/business/technology/la-fi-tn-newegg-lawsuit-20171020-story.html

Sounds like Newegg might be in pretty deep shit over this.

 

[Rebel Leader]

And i just bought aomething from newegg yesterday

 

[ItAintEasyBeinCheesy]

And i just bought aomething from newegg yesterday

Sue them befire you get sued.

 

[Rebel Leader]

Sue them befire you get sued.

Befire!?

😨

 

[Mr. X]

My yakuza 6 CE preorder 😲

 

[atomsk]

newegg has been my go-to site on PC parts for years

not even sure who the closest competitor would be if they get taken down

 

[Gaardus]

newegg has been my go-to site on PC parts for years

not even sure who the closest competitor would be if they get taken down

MicroCenter?

 

[Duxxy3]

MicroCenter?

Great place, but I'm not driving to cambridge every time I need a pc part.

 

[Moose Biscuits]

Now where will we get our poptarts from?

 

[MarionCB]

How the hell did they think they could get away with this? It seems so amazingly dumb.

 

[robochimp]

Newegg isn't the company that is accused of running a ponzi scheme. A different company was providing banks with bogus inflated purchase orders from newegg to get loans. Now the banks are turning over every stone to recoup money after not doing their due diligence.

 

[duckroll]

Newegg isn't the company that is accused of running a ponzi scheme. A different company was providing banks with bogus inflated purchase orders from newegg to get loans. Now the banks are turning over every stone to recoup money after not doing their due diligence.

Newegg conspired with the company and got kickbacks for it. Sounds criminal to me.

 

[Lightning_Roller]

Holy shit, this is crazy.

 

[Compsiox]

Newegg has sent me opened GPUs before. Never buying from them again (unless it's the day a GPU releases).

 

[Pbae]

I never received items from Newegg unless I called and asked for a replacement. We're talking about $300+ items. Fuck them.

 

[Phloxy]

Where I used to work in Fedex this was becoming a big deal. A random Korean family moved into 3 apartments right next to each other and starting ordering a ton of Newegg stuff every day. I'm talking 40 boxes a day for about a month straight across these 3 apartments under false names. They would take them, resell them to some online vendor, and have them ready to pick up the next day by UPS. It was very odd, and super shady. After about a month and a half they suddenly just moved out.

I guess they got in while the getting was good?

 

[Diablos]

This sucks. I love Newegg and I’ve shopped there since I was 19, but if they really did this that’s pretty unforgivable and they deserve whatever is thrown at them.

It was good while it lasted I guess...

 

[Rebel Leader]

MicroCenter?

Wpuld be great if there was one near me but there is not one in my state


I wanted some stuff from them but all were instore only orders

 

[sfedai0]

That kickback must be huge to risk your company for it.

 

[out0v0rder]

Bring back egghead software!

 

[cyress8]

Hope they have a going out of business sale before they close. I can always use an extra 1080Ti or three.

 

[CaviarMeths]

Damn I've had nothing but good experiences with Newegg and have recommended them to a few people looking for PC parts. Guess I'll be looking for a new store if these allegations are true.

 

[McHuj]

Hope they have a going out of business sale before they close. I can always use an extra 1080Ti or three.

First thing I thought of too

 

[DongBeetle]

Oof. Love Newegg. Built my first PC with them

 

[Dodecagon]

Until I moved near a microcenter, they were my go to

 

[BlueLiquid]

This is incredibly disappointing. Since I started building my own PCs I've purchased the vast majority of the components from Newegg. Their prices were comparable to other retailers and they usually had better stock. I also had a lot of respect for their active opposition to patent trolls.

 

[Devilgunman]

Boy, since then have they fallen so low? They used to be great years ago then Amazon caught up with the price so I switched permanently to Amazon for computer parts.

 

[Agent_ShortBus]

newegg has been my go-to site on PC parts for years

not even sure who the closest competitor would be if they get taken down

Tiger direct is the closest I can think of. Not as good sales as newegg though.