Investigation into D&O malfeasance now underway (Attorney Advertising)

As a “thank you” of sorts, to the law firm that has long provided pro bono legal advice to this blog, the authors of the blog are making this space available to his law firm, for some protected/permitted attorney advertising:

“…Counsel for this blog today announced that his firm is investigating whether certain officers and/or directors of Mattersight Corporation have violated federal or state laws.

The investigation focuses on failures to disclose various items of SEC required information, to the monetary detriment of long term unaffiliated Mattersight shareholders, and whether the board members of Mattersight breached their fiduciary duties in connection with (i) various borrowings, and (ii) various privately placed common stock offerings. The investigation also centers on false and/or misleading statements and/or failures to disclose the metrics for determining whether the company was in compliance with various of its lending covenants.

The investigation is also looking into whether the 2016 year end incentives awarded (bonuses and stock awards to executives) were in part the product of intentional manipulation by certain officers of Mattersight, since the company subsequently reversed over $600,000 in revenue reported in Q4 2016, in announcing its Q1 2017 results. Both quarters reported GAAP losses per share from continuing operations, as has been true every quarter since the year 2001.

If you are a longer-term shareholder of Mattersight Corporation, and have continuously held shares from June of 2016, through to at least March of 2017, you may have standing to hold Mattersight itself harmless from the damage the officers and directors may have caused, by making them personally responsible.

You may also be able to assist in reforming Mattersight Corporation’s corporate governance processes, to prevent future breaches of fiduciary duties.

If you are a Mattersight shareholder and are interested in learning more about your legal rights and remedies, please contact the legal counsel for this blog, by leaving a comment below, or email us at this link.

If you email, please include your phone number….”

The attorney making this advertisement is licensed in Illinois — and has over 30 years of securities and corporate experience.

Finally, we are told that any federal class action suit resulting from the ongoing investigation (by this legal counsel) may be brought in the federal courts located in Chicago, where jurisdiction is easily obtainable as against these directors and officers, and venue may appropriately be laid — since Mattersight has a principle executive office in downtown Chicago.

Now you know.

5 thoughts on “Investigation into D&O malfeasance now underway (Attorney Advertising)”

  1. Loan covenants based on the company’s financial condition have been of concern. I wonder if customer agreements have similar covenants, too?

  2. It would seem reasonable that a really big customer or two might be concerned (if the MATR services was valued) the servers of the MATR cloud stopped operating for lack of funds, they would be financially impacted. That might be of relevance to investors, given MATR’s dependence on a couple of big customers.

  3. Related to customers wanting to protect themselves, I wonder if some of the customer agreements were reviewed by current or past lenders/investors prior to lending/investing? It would only make sense for them to want to be well-informed. Hercules was a lender with an option to buy stock. That made them both a lender and a (potential) investor. If that were the case, should such customer agreements be made available to all investors, not just the special ones?

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