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.