Skip to main content

Founder Zain Jaffer may be looking to take back control of Vungle

Zain Jaffer may be gearing up for a fight to take back control of Vungle, the mobile ad company he founded.

Jaffer was removed from his role as CEO role last fall, following his arrest on charges of assault with a deadly weapon and performing a lewd act on a child.

However, a San Mateo County judge subsequently dismissed the charges. The district attorney’s office subsequently released a statement offering more context for the dismissal, saying that they did not believe there was any sexual conduct on the evening in question, and that “the injuries were the result of Mr. Jaffer being in a state of unconsciousness caused by prescription medication.”

So what’s next for Jaffer and Vungle? There are hints in a recent letter from Jaffer’s attorney John Pernick, which was sent to current Vungle CEO Rick Tallman.

TechCrunch has obtained a copy of the letter, which requests access to Vungle’s records, specifically the names and addresses of company shareholders. Pernick’s letter suggests that this could be a prelude to further action (emphasis added):

Mr. Jaffer is considering various options with respect to Vungle and his shares of Vungle. He has considered selling some portion of his Vungle shares. However, he is also considering pursuing a leadership change at Vungle through calling for a shareholders meeting for the purpose of voting on a new board of directors and/or purchasing shares of additional Vungle stock. Communicating with Vungle shareholders with respect to their interest in purchasing or selling Vungle stock or in a change in the board of directors is an entirely proper purpose for Mr. Jaffer’s request to inspect the shareholder information that will enable him to make these communciations.

When TechCrunch contacted Pernick, he confirmed the authenticity of the letter but declined to comment further. A spokesperson for Jaffer also declined to comment, and Vungle did not respond to our inquiries.

As you can see in the quote above, the letter indicates that Jaffer is considering multiple courses of action.

But if he decides to pursue a leadership change at Vungle, either by winning over existing shareholders or by purchasing a controlling stake in the company, it sounds like there are investors willing to back him — for starters, Jun Hong Heng at Crescent Cove Capital Management confirmed that his firm is working with Jaffer.

“We think Zain and Vungle have incredible potential,” Heng said in a statement. “We look forward to working with Zain and giving him the support he needs to help him regain control of his company.”

We also reached out to Anne-Marie Roussel, who recently resigned from Vungle’s board of directors. Roussel said via email that “the Vungle controversy is an interesting proxy for a much larger debate: the fuzziness surrounding ethical conduct in the tech industry.”

She added, “My personal prediction is that boards of tech companies will be held increasingly accountable for the ethics of the key decisions they make.” As for how that applies to Vungle, she said:

How does it reflect on ethical values when a CEO is dismissed based on presumption of guilt?  Don’t we live in a democracy where one of the key legal right is “presumption of innocence” (as in a defendant is innocent until proven guilty). Upholding that principle by collaborating with his defense team was what led to my resignation from Vungle’s board.

Letter to Vungle by TechCrunch on Scribd



from TechCrunch https://ift.tt/2MfEeZj

Comments

Popular posts from this blog

Android blatantly copies the iPhone X navigation gestures

Google unveiled some of the new features in the next version of Android at its developer conference. One feature looked particularly familiar. Android P will get new navigation gestures to switch between apps. And it works just like the iPhone X.“As part of Android P, we’re introducing a new system navigation that we’ve been working on for more than a year now,” VP of Android Engineering Dave Burke said. “And the new design makes Android multitasking more approachable and easier to understand.”While Google has probably been working on a new multitasking screen for a year, it’s hard to believe that the company didn’t copy Apple. The iPhone X was unveiled in September 2017.On Android P, the traditional home, back and multitasking buttons are gone. There’s a single pill-shaped button at the center of the screen. If you swipe up from this button, you get a new multitasking view with your most recent apps. You can swipe left and right and select the app you’re looking for.If you swipe up o…

Square launches restaurant point-of-sale platform

Square, which has already made its way into retail stores and service-based businesses (think hair salons, massage therapists, etc), is officially getting into the restaurant business with the launch of Square for Restaurants. Square for Restaurants is a point-of-sale system that handles everything from menu updates, floor layouts, employee scheduling, performance tracking to tip splitting.Usually, restaurants have “some old legacy thing or something else,” Square Seller Lead Alyssa Henry told me.“Historically, we’ve not served this customer segment very well,” Henry said. “With Square for Restaurants, we’re excited to finally be able to serve this customer segment and deliver on a couple of key things that are core to Square but also highly valued by sellers of all types.”This new product is designed to be fast, self-serve, elegant and cohesive, Henry said. It also integrates seamlessly into Square’s existing ecosystem that includes Payroll, Capital and more. Given Square’s ownership…

Recapping the TechCrunch China Shenzhen 2018 event

This year we returned to Shenzhen, the Chinese city known as the world’s ‘Silicon Valley for hardware,’ for an event that was packed full of future-looking discussions, innovative startups, experienced founders, VCs and more.We love Shenzhen. Sure, Beijing has Zhongguancun and Shanghai has its international and diverse entrepreneurial community. But Shenzhen has a certain je ne sais quoi, an energy that pervades the entire city. Maybe it’s the great weather or maybe its youth of the place — both the residents and the age of the city itself — but every time we come to this southern city, we’re amazed by the people, projects, and companies thriving here.#Shenzhen, not Beijing or Shanghai, is the forerunner of Chinese innovation, says @ganglu, founder and CEO of TechNode #tcshenzhen@technodechina#reshapinginnovationpic.twitter.com/7ZX2o2Cpg1— TechNode (@technodechina) November 19, 2018 This year was no different. From blockchain smartphones to battling robots, from hackathons to VC speed …