ECONOMY

Akazoo is facing legal proceedings

akazoo-is-facing-legal-proceedings

A series of US legal firms on Tuesday invited the shareholders of Greek online music streaming company Akazoo to take part in legal cases being launched against the Athens-based corporation on the grounds of cheating, following a hedge fund report alleging serious irregularities at the Nasdaq-listed enterprise.

The six law firms to begin legal proceedings against Akazoo’s management over stock manipulation, based on the report published by Quintessential Capital Management (QCM), include Rosen Law Firm, the Schall Law Firm, Glancy Prongay and Murray LLP, among others.

Despite the serious allegations in the QCM report, which branded Akazoo a “castle of cards,” the Greek company failed to issue any form of response in the first 48 hours, while its stock continued its southbound course on the Nasdaq on Tuesday.

If Akazoo does go down, it will be the fourth Greek new-technology company to do so after being accused of deceiving investors. It would follow Velti in 2010, Globo in 2014 and the battered Folli Follie in 2018. QCM refers to links between Velti, Globo and Akazoo, as they allegedly shared some staff members.