Tech

According to the US SEC, music streaming companies have reached a $ 38.8 million settlement for fraud

File Photo: The US Securities and Exchange Commission (SEC) seal will be seen on May 12, 2021 at its headquarters in Washington, DC, USA.Reuters / Andrew Kelly / File Photo

October 27, 2021

Chris Prentice and Kanishka Singh

(Reuters)-The US Securities and Exchange Commission (SEC) said Wednesday that Akazoo SA had settled its charges against Akazoo SA for $ 38.8 million after allegedly defrauding investors from tens of millions of dollars.

Akazoo, a Greek-based music streaming business, was unveiled in 2019 through a special acquisition company. The SEC frozen Akazoo’s assets a year ago as part of an investigation into its claims.

According to the SEC, Akazoo told investors that it is a fast-growing music streaming company focused on emerging markets with over 38.2 million registered users, but in reality it pays. There were no users and the revenue was negligible.

Akazoo’s lawyer, who did not acknowledge or deny the SEC’s findings, declined to comment.

In April 2021, Akazoo agreed to a ruling that would prevent the company from violating fraud prevention and reporting laws. The settlement, announced on Wednesday, orders Akazoo to blame $ 38.8 million for unfair profits that would go to a settlement related to investor casualties and private class action proceedings.

(Report by Kanishka Singh in Bangalore and Chris Prentice in Washington, edited by Leslie Adler and Richard Pullin)



According to the US SEC, music streaming companies have reached a $ 38.8 million settlement for fraud

Source link According to the US SEC, music streaming companies have reached a $ 38.8 million settlement for fraud

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