e-district.net sacks CEO
Writs issued, assets frozen and damages sought
The CEO of e-district.net, Steven Laitman, has been dismissed amid allegations that he inflated usage and financial figures at the entertainment dotcom.
On Friday, e-district served an injunction on Laitman alleging that he breached fiduciary and contractual responsibilities.
The British dotcom also froze his assets and is seeking damages.
Laitman was suspended from his post last week after it was discovered that the numbers of registered users, page impressions and revenues reported to investors appeared to have been "substantially overstated".
e-district.net said that it will release the preliminary results of an investigation as soon as it can. The company is unaware of any "misappropriation of funds" from the company.
The fear now is that inflated usage and financial figures might have misled investors when the company floated on the Alternative Investment Market (AIM) last year.
Shares in e-district.net were suspended last week. ®