So debts are discharged..but your shares are unscathed? Sure about that? Disadvantages of Reverse Merger Lawsuits for various reasons are very common during the reverse Often, the promises made during mergers do not come true, leading to almost no value increase for the shareholders. It leads to reverse stock splits. This further leads to a reduction in the number of shares held by the shareholders. It leads to inefficiency in operations as the private company’s managers do not have the expertise to run a public company. https://efinancemanagement.com/wp-content/uploads/2017/09/Reverse-Merger.jpg