Brad Greenspan, founder of myspace.com, claimed on Thursday that Intermix Media Inc.'s sale of Myspace intentionally defrauded shareholders out of tens of billions of dollars.
In a report released on Freemyspace.com, Greenspan alleged that certain Intermix board members and senior executives blatantly deceived shareholders into voting for a quick sale of Myspace to News Corp., knowing it was worth more.
Deliberate steps were taken to withhold and manipulate information; money was improperly gained and laws were broken, Greenspan said. It is my hope that regulatory bodies will begin their investigations quickly before evidence is destroyed.
In February, Greenspan filed a complaint against Intermix and VantagePoint Venture Partners in the Superior Court of California County of Los Angeles. The complaint stated that in 2005, News Corp. purchased Intermix (which owned Myspace), in a cash-out merger as a result of an unfair process and at an unfair price that did not reflect the recent growth and future prospects of Myspace.
The report consists of utilized a variety of sources for, including chief financial officer Lisa Terrill and chief operating officer Sherm Atkinson, and Kroll, Inc., a risk consulting company.
Greenspan served as chairman and chief executive officer when Myspace was created by Intermix.
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