YooMedia payment placates investors
- Added:
- Feb 28, 2003
The company resolved months of negotiations at the end of January by agreeing to pay £750,000 to its investors' action group, who allege they were fed misleading information when the company listed as E-district.net.
In return, YooMedia will be repaid out of any cash the group recovers, while the shareholders have agreed to drop plans for any claims they may have made against the company in the future.
The flotation, handled by WestLB and audited by PriceWaterhouseCoopers, saw the firm listed at 195p per share and raised £15m. Its shares now stand at 5p.
The move marks another step towards the conclusion of various disputes the company, which recently won a deal to supply iTV voting services for local and general elections, has had to deal with over the last two years.
When named E-district.net, its former chairman Steve Laitman became the subject of a Metropolitan Police fraud investigation over the alleged fabrication of its revenue figures.
The company reached a settlement with Laitman last February, through which his shareholding was distributed to its other investors. It has since claimed the probe no longer significantly impacts on its resources.
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