London Stock Exchange Group fails to shake off £131m fraud lawsuit
LSEG will face a $175m (£131m) fraud and breach of contract lawsuit brought by the former chief executive of a company it acquired, after a US judge denied the London stock exchange-owner’s attempt to dismiss the case. LSEG’s subsidiary Refinitiv, which it bought from Thomson Reuters in 2020, acquired US analytics firm Maystreet in 2022 [...]
A former chief executive of a company acquired by London Stock Exchange Group (LSEG) has filed a $175m (£131m) fraud and breach of contract lawsuit against the stock exchange-owner, according to prosecutors. LSEG's subsidiary Refinitiv acquired US analytics firm Maystreet in 2022 for about $275m, with an earnout provision that could add up to $175m in future payouts depending on Maystreet's post-acquisition performance.
The lawsuit alleges that Maystreet CEO Patrick Flannery was misled by false promises and operated in bad faith after the acquisition closed, causing the firm to miss revenue targets and fail to receive the earnout payment. Flannery also claims he was terminated shortly after filing the complaint. LSEG strongly denies the allegations and has filed a motion to dismiss the case.
However, a US judge has denied LSEG's attempt to dismiss the lawsuit, ruling that the claims are sufficient to proceed to trial. The case is set to go to trial in the US, with Flannery's lawyer expressing satisfaction with the court's decision.
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