Runs par for the course because dumb investors buy the story and don't pay attention to logic.
Problem is, the company opens itself up to discovery that can easily be used in a civil/criminal action against them. Claims were made by the company and the only defense is for the company to prove they were not an ATM. That means it has to provide proof of where all the money went and that it was used for business. I would hate to have to turn over that data and wonder whose hands it would fall into.