ALY court case is available on WestLawPretty damning against PH and CK.
Mindboggling what is in here but I am sure that the investigator's report will be an even better read.
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The story so far per the Superior Court decision (all allegations at this point, I suppose, until the Investigator finishes and draws conclusions)....
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SG joined the board and found that ALY had been paying PH's spouse's company a couple 100k a year for a $32k contract approved by CK.
The investigation into this led to PH resigning as CEO from ALY and the Boards of MarketWall and InvestoPro.
After the resignation, more problems:
- PH insider tipping
- PH has shareholders sign fraudulent, backdated NDAs to hide actions from ALY
- PH promising board seats to shareholders
- PH repeatedly disclosing ALY proprietary info
- PH withholding documents from ALY
- PH charging and approving improper expenses to ALY
Evidence comes from:
- a text exchange between PH and a shareholder (brave guy?).
- CK approving payments to PH for personal expenses without disclosure to/approval by the company
Also... turns out that PH has known that Intesa screwed MarketWall by leaking proprietary info to a competitor. Info he got by sitting on MarketWall board but did not disclose to ALY. (Seriously! WTF! What is MarketWall doing about that?)
The Judge asked for submissions from each side regarding these issues.
- NH et al. say they are whistleblowers.
- PH er al. say it doesn't matter, they constitute the Board and the whistleblowers were fired.
The Judge sides with NH et al. saying the other arguement is dumb (but more eloquently) and orders the investigation to determine what is actually going on.
"It appears to me, based on the evidence of Mr. Hariharan's activities...thta there is a reasonable basis to believe that both the business of ALY and the powers of its directors, have been exercised in a manner that is oppressive to or unfairly prejudicial to or that unfairly disregards the interests of ALY's shareholders"
"It also appears to me that there is a reasonable basis...to beleive that persons concerned with the business or affairs of the corporation or any of its affiliates, in particular Mr. Hariharan and likely Mr. Kondragunta, have in connection therewith acted dishonestly (and likely fraudulently)."
Anyway, that brings us to the decision that was farily represented in the last PR as to what is going to happen with the investigator etc.
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Seriously, you all should consider the 7-day free trial of WestLaw just to have a gander at the original doc (or maybe wait until after the next court date).