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Living in Phoenix I see the LS crew probably as much as anyone does. I also see at least one of their former employees quite a bit as well.
I don't see any indication that they are having anything more than the same growing pains that other companies have had in this industry.
Things like this go in cycles, I've seen it in almost every company I've worked for. You get a group together that works well, they click and do great things for awhile and then one of them leaves for whatever reason so others tend to follow at the same time.
Then the whole thing starts again. No big deal.
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