Big Technologies soars after £39m settlement with former shareholders
Big Technologies shares soared on Monday after the London-listed tech firm reached a £38.5m settlement following legal action from former shareholders.
The shareholders alleged they were unfairly forced to sell down their stakes in the company in 2018 prior to the firm’s IPO. The action triggered an investigation by Big’s board which led to the ousting of founder and former chief executive, Sarah Murray.
This payment will be split, Big said, with £31.5m payable immediately, and the remaining £7.0m payable in eighteen monthly instalments.
The maker of Buddi electronic devices said it is now looking to reach a separate settlement with Murray, in a bid to make her pick up the tab for the costs of the settlement.
Big Technologies shares jumped as much as 13 per cent to 98p early on Monday morning. The stock is up by around a third since the start of the year.
The maker of Buddi electronic devices said it is now looking to reach a separate settlement with Murray, in a bid to make her pick up the tab for the costs of the settlement.
Sangita Shah, Big Technologies interim chair, said: “Today’s settlement is a positive outcome to the protracted Buddi litigation which draws a line under the significant uncertainty that the group has faced.
As a board, we remain committed to continuing discussions directly with Sara Murray in order to resolve the SM [Sara Murray] proceedings without further protracted litigation, with a view to reaching an acceptable settlement.”
Murray was dismissed from Big Technologies at the end of March after the firm accused her of concealing her beneficial ownership in the business, as well as forging documents relating to a share restructure which took place prior to the company’s IPO in 2021.
Big’s board said it asked Murray on multiple occasions whether there was a connection between her and a series of offshore trusts which together controlled around two-fifths of the company’s share capital prior to the AIM flotation.
“Ms Murray denied any connection at any time prior to her dismissal, and it was not declared to the Takeover Panel or in the AIM Admission Document at the time of the IPO,” Big said in a statement.
Murray denies that she had control over the offshore vehicles.
“I don’t own or control any of those companies. I’ve never said I’m not connected to them, I do have connections to them,” She told CityAM.
She has denied forging documents, referring to the accusation as “a whole heap of false allegations by the company against me.”
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