Good morning! It's Paul here.

I'll start Tuesday's article with an interesting announcement from after-hours on Monday:


Taptica International (LON:TAP)

Taptica (AIM: TAP), a global leader in advertising technologies for performance-based mobile marketing and brand advertising...

This is an Israeli-based tech company. I avoid all of these, as it seems to me there can sometimes be something wrong with them, lurking under the surface.

Taptica's CEO seems to have been found guilty of lying;

Hagai Tal, CEO of the Company, has today been found liable for certain statements made in relation to the sale of Plimus Inc, a company of which he was both a shareholder and chief executive officer at its time of sale in August 2011. The plaintiffs in the case are entitled to restitution for breaches of certain representations and warranties.


From what I can make out, this does not seem to have any financial impact on Taptica itself. 

He has resigned as CEO of Taptica. His LinkedIn profile indicates that he was CEO of Taptica from Jan 2014 until yesterday. So the problem with Plimus pre-dates his involvement in Taptica by over 3 years.

As Monday's RNS states, the legal action against him was disclosed in Taptica's Admission Document. I wonder how many investors actually spotted it though? It just shows, those Admission Documents really are important, and need to be scrutinised closely, as that's often the only time that important negative information will be disclosed. Especially in the notes near the back of the Admission Document, as many people will have given up reading it by that late stage!

Details of the claim were disclosed in the Company's admission document on page 85 (section 7.9 of Part IV), which is available on the Company's website.

Let's have a look then! This is what section 7.9 says;

7.9 In September 2012, Great Hill Equity Partners IV LP, Great Hill Investors LLC, Fremont Holdco, Inc and Bluesnap Inc (formerly Plimus Inc), (collectively “Great Hill”), filed a complaint in the Court of Chancery of the State of Delaware against SIG Growth Equity Fund I LLP, SIG Growth Equity
Management LLC, Hagai Tal and others (collectively the “Defendants”) arising out of the acquisition by Great Hill in August 2011 of Plimus Inc (“Plimus”), a provider of mobile and internet payment solutions. Great Hill filed…

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