Investor Buys Stake in comScore to Force AGM

New York-based hedge fund Starboard Value has bought a stake in comScore, aiming to force the company to schedule its first Annual General Meeting in two years.

The news follows a troubled period for comScore, which saw shares plunge 35% one day in March 2016, following the revelation that an audit had been set up to examine accounting irregularities. The company then reported in the audit that its previous three years' financial statements 'should no longer be relied upon'. During the year, it also lost its co-founder and Executive Chair Magid Abraham; as well as Chair Joan Lewis, Chair of the Board's Nominating and Governance Committee Patricia Gottesman, and former CEO Serge Matta, who all resigned from their roles.

With its 4.9% stake, Starboard, which is led by Jeffrey Smith (pictured), has become one of comScore's largest shareholders. Starboard has filed a case in the Delaware Chancery Court to force comScore to hold meetings, which it says are required by comScore's own corporate regulations. Because of the firm's failure to hold company meetings since July 2015, only four of its directors have been elected by stockholders, and Starboard says eight should be elected at the meeting. In a statement, Starboard said the court 'should not permit comScore to stall corporate democracy any longer'.

Web sites: www.comscore.com and www.starboardvalue.com .

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