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Summary:

Online video service provider Roo Group lost four directors and gained a CEO this week, picking up additional controversy along the way. According to an SEC filing separate from the one disclosing the resignations, the directors — the only members of Roo’s board not employed by […]

Online video service provider Roo Group lost four directors and gained a CEO this week, picking up additional controversy along the way. According to an SEC filing separate from the one disclosing the resignations, the directors — the only members of Roo’s board not employed by the company — had leveled accusations against one of the remaining two board members. The two remaining directors are Roo’s CEO and CFO.

Recently, we were advised by the former independent members of our Board of Directors of unsubstantiated rumors regarding certain allegations made against members of our senior management, one of whom is also a director. These allegations include improper payments that have been alleged to have been made to and/or on behalf of such persons.

Meanwhile, Roo announced it is replacing CEO Robert Petty with Kaleil Isaza Tuzman of JumpTV. The company will lay off 21 percent of its staff, or some 40 employees, as part of efforts to cut costs.

Bank in February, Roo bought peer-to-peer software maker Wurld Media, another company that’s mired in controversy. Executives from Wurld are facing larceny and money laundering charges as well as a class-action lawsuit brought by former employees demanding backpay. Our story on the criminal lawsuit has attracted a vigorous discussion in the comments from insiders at the company looking to air their grievances.

Roo customer News Corp. cut a deal in January to control up to 10 percent of the company. For the most recent three-month period, Roo posted a net loss of $8.21 million on sales of $3.43 million.

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  1. I still think ROO is tied into the Wurld Media mess …..

  2. If you contine to researh and read through ROOs SEC documents, you will ultimately see that ROO “loaned” Greg Kerber money ($400,000) and then took the “proceeds” out of the sale to pay it back! Where did that money go? Why didn’t it get to the employees and pay some of the debts (maybe they did)? Did he pay taxes on this when “he” sold the company and didn’t have to pay back what he owed (maybe he did)? This says in 2005 they loaned him the money, that deal didn’t come to the table until February 26, 2007. Now either there was something going on before that Term Sheet where Greg Kerber agreed to sell the company to ROO or they made a mistake in their financials or who knows?

    RGRP : OTC BB

    “On June 15, 2005, Greg Kerber issued a promissory note to the Company in the principal amount of $400[,000]. Pursuant to the promissory note, the Company advanced to Greg Kerber the sum of $394[,000].”

    Thoughts?

  3. Roo Lays Off Remains of Wurld Media Team « NewTeeVee Monday, January 14, 2008

    [...] news comes after Roo (OTC:RGRP) named a new CEO and saw the resignation of four of its directors in December. There’s a lot more meat in the Roo restructuring announcement from today — hirings, a [...]

  4. Q&A: KIT Digital’s Kaleil Isaza Tuzman « NewTeeVee Thursday, May 22, 2008

    [...] is increasingly looking like a shell company for Chairman and CEO Kaleil Isaza Tuzman, who joined the firm at the beginning of this year and quickly renamed it KIT digital. But in one of his first [...]

  5. promissory not template Sunday, December 27, 2009

    This business was established since 2001 , working about the KIT digital has been providing proprietary video distribution technologies and video-centric interactive marketing solutions to large, global clients..That is ? If it s right I think it s not Bad.

  6. Time for an updated report on KIT digital Liz. The story is quite a read.

    You have misrepresented their story all too well since this post.

    What do you say huh? Streaming Media gave you a blueprint to work from the other day.
    Some unbiased journalism please? Is that too much to ask for?

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