Former Rentrak Investors Reach $19m Settlement Deal

In the US, former shareholders of audience measurement firm Rentrak have reached a $19m cash settlement proposal, after suing the company and its directors over its now completed sale to comScore.

comScore first announced its plans to buy the rapidly growing Rentrak in September 2015. The all-stock deal was valued at around $732m and approved by shareholders the following January, when comScore's share price was around $38.53. A few weeks later, the price fell 35% to $26.52 when it was disclosed that comScore's Audit Committee was reviewing 'certain potential accounting matters' - referring to an investigation into wrongly stated results, due to the firm's practice of reporting 'non-monetary' revenue resulting from data-sharing agreements with other companies.

Since comScore's accounting issues first came to light - about five weeks after the merger closed - comScore's Chairman, CEO, CFO and General Counsel have all left the company and three other directors have left the Board. The company's stock price has fallen dramatically, affecting plaintiffs who received comScore stock as consideration for their Rentrak shares.

These shareholders had accused Rentrak's Board and two senior execs of accepting a below-market offer from comScore, in order to protect their own jobs; and failing to disclose a better bid to shareholders. According to a statement, legal firm Andrews & Springer has now negotiated a $19m cash settlement on behalf of these shareholders. The court has preliminarily approved the settlement deal, although final approval of the proposed settlement is still pending. Andrews & Springer is continuing to pursue federal securities claims against comScore's officers and directors and comScore's auditor Ernst & Young in a related action pending in Multnomah County, Oregon.

Web site: www.comscore.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.