In the complaint, LifeLine says that Ozy should have disclosed what had taken place on that call, which occurred before its investment. “Had LifeLine known the foregoing facts it would never have invested in Ozy Media,” the lawsuit says.
In an interview included in the Times report on the matter, Mr. Watson said that the impersonator was Ozy’s co-founder and chief operating office, Samir Rao. He also said that the company’s board was made aware of the incident shortly afterward. Mr. Rao has not commented on the matter.
LifeLine Legacy Holdings is part of LifeLine Financial Group, a firm started by Humble Lukanga, who escaped genocide and famine in Uganda and moved to the United States at age 11. LifeLine manages the money of athletes and celebrities, including the National Football League player Marshon Lattimore and the actress and producer Issa Rae. All told, it oversees some $500 million for about 50 clients, most of them Black, Mr. Lukanga told The Washington Post in August.
LifeLine said in the suit that it was approached by Mr. Rao late last year and that it agreed to invest $2 million in Ozy Media in February after receiving assurances that the company had a “strong business performance, investments by high profile institutional investors, high viewer metrics, and competent and honest company management.” Mr. Rao and Mr. Watson also told LifeLine executives that Goldman Sachs was planning “a substantial investment” in the company, the lawsuit says.
Around May 2021, the lawsuit claims, Mr. Rao told LifeLine that Alphabet or one of its Google affiliates would lead another fund-raising round with a $30 million investment in Ozy Media. LifeLine then made a second investment, buying about $250,000 in Ozy shares as part of that round, the suit says.
Article source: https://www.nytimes.com/2021/10/05/business/ozy-media-securities-fraud-lawsuit.html
Speak Your Mind
You must be logged in to post a comment.