Spot Runner is an American advertising technology company based in Los Angeles, Calif. They allow small advertisers to produce, plan and buy ads through their website. The company was co-founded by serial entrepreneurs Nick Grouf, David Waxman, and Adam Shaw. Spot Runner officially launched on January 11, 2006.
The founders of the company as well as Index Ventures and Battery Ventures are currently being sued by WPP, one of its investors, for fraud related to allegedly running the company as a part of a pump and dump scheme. [1] The company was also sued by one of its own co-founders, Adam Shaw, for fraud related to stock options. The company lost the judgment and Mr. Shaw was awarded $2.2M in restitution plus fees and interest. [2][3]
Trouble at Spot Runner: Layoffs, Allegations of Executive Fraud
On June 23rd, 2009 it was disclosed that the company lost a judgment from one of the co-founders (Adam Shaw), who had been bilked out of his stock options as agreed upon in the company's founder agreement by the other two (Nick Grouf and David Waxman.) An American Arbitration Association panel made the judgment which declared that Mr. Shaw was a co-founder and awarded him $2.2M plus fees and interest. [4][5]
On April 17th, 2009 several news sources reported that WPP, an early investor, had filed a lawsuit on April 9th alleging the leadership at the company "perpetuated a 'pump and dump' scheme in which they aggressively promoted the company to new investors and then sold new investors large quantities of their own secondary shares." Specifically named in the suit are founders Nick Grouf and David Waxman, general counsel Peter Huie, and board members Danny Rimer and Roger Lee. Also named are majority shareholders Index Ventures and Battery Ventures, as well as the company itself. Court documents also allege that "The defendants operated the company from its inception for their own benefit instead of the best interests of the company and its stockholders." According to an Advertising Age article documenting the court case, "The lawsuit comes as Spot Runner has had its share of troubles, not the least of which include a few rounds of layoffs, the most recent being last month. The shop is estimated to have less than 200 employees at this point." [6] The entirety of the complaint can be read online. [7]
On March 14, 2009 TechCrunch.com reported that Spot Runner laid off another 60 employees on Friday March 13, 2009. [8]
On November 3, 2008, paidcontent.com reports Spot Runner is laying off 30% of workforce, and seeking "strategic options" for Weblistic.[9] [10]
On October 31, 2008, Techcrunch.com reports morale is low among Spot Runner. After the last round of layoff's an additional 50 left on their own account.[11]
On October 30, 2008, fuckedstartups.com reported that Spot Runner might terminate additional employees. [12]
On August 12, 2008, Valleywag reported that Spot Runner terminated 50 employees. [13]
External links
References
- ^ http://online.wsj.com/article/SB124000462805230229.html
- ^ http://industry.bnet.com/advertising/10002762/2762/
- ^ http://online.wsj.com/article/SB124580010087644431.html
- ^ http://industry.bnet.com/advertising/10002762/2762/
- ^ http://online.wsj.com/article/SB124580010087644431.html
- ^ http://adage.com/agencynews/article?article_id=136075
- ^ http://valleywag.gawker.com/5218835/spot-runner-looks-like-a-scam-runner
- ^ http://www.techcrunch.com/2009/03/14/spot-runner-is-running-on-fumes-at-least-another-60-to-lose-their-jobs/
- ^ [ http://www.paidcontent.org/entry/419-spotrunner-laying-off-115-people-looking-for-strategic-options-for-loca/ : Spot Runner Laying off 115 People; Looking For Strategic Options For Local Search Group]
- ^ : Spot Runner CEO lays off 115, calls Valleywag to brag about it
- ^ [ http://www.techcrunch.com/2008/10/31/a-spot-of-trouble-at-spot-runner/ : A Spot Of Trouble At Spot Runner]
- ^ : Confirmed- SpotRunner.com layoffs AHEAD! 75 PEOPLE
- ^ Report: Spot Runner lays off 50
This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)
