A fund supervisor that invested greater than $2 million in Ozy Media filed a lawsuit on Monday, claiming that the corporate “engaged in fraudulent, misleading and unlawful conduct.”
The lawsuit, filed by LifeLine Legacy Holdings of Beverly Hills, Calif., claims that Ozy didn’t disclose pertinent info about its enterprise in February, when LifeLine was contemplating its funding.
LifeLine cites a convention name that passed off that very same month between Ozy and Goldman Sachs. On that decision, as The New York Occasions reported, an Ozy govt apparently impersonated a YouTube govt; the aim of the impersonation was to guarantee the Goldman staff that movies produced by Ozy have been a success on YouTube.
In its authorized grievance, LifeLine mentioned that Ozy ought to have disclosed details about that decision. “Had LifeLine identified the foregoing info it will by no means have invested in Ozy Media,” the lawsuit mentioned.
The go well with was filed in the U.S. District Court docket for the Northern District of California, the place Ozy Media is primarily based. LifeLine mentioned that it was approached by Ozy’s co-founder and chief working workplace, Samir Rao, in late 2020.
LifeLine says in the lawsuit that Mr. Rao and Carlos Watson, the founder of Ozy Media, had informed LifeLine executives that Goldman Sachs was planning to make “a substantial funding” in the corporate.
LifeLine agreed to speculate $2 million in Ozy Media in 2021 after receiving assurances that Ozy had a “robust enterprise efficiency, investments by excessive profile institutional buyers, excessive viewer metrics, and competent and trustworthy firm administration,” in accordance with the lawsuit.
Round Might 2021, the lawsuit claims, Mr. Rao informed LifeLine that Alphabet or one of its Google associates was main one other funding spherical with a $30 million funding in Ozy Media. LifeLine then bought about $250,000 in shares as half of that fund-raising spherical.
Ozy mentioned in a assertion on Friday that it had shut down. In tv appearances on Monday, Mr. Watson, the corporate’s head, mentioned he was attempting to deliver the corporate again to life.
LifeLine is searching for a jury trial. It has additionally requested that or not it’s reimbursed for all the cash it gave Ozy and has requested the courtroom to award punitive damages.
This is a growing story. Verify again for updates.