BETAKIT – May 15 – Former Extreme Venture Partners (EVP) founding partners Sundeep Madra and Amar Varma, as well as Social Capital CEO Chamath Palihapitiya, have been ordered to pay $15.6M to plaintiffs in an Ontario Superior Court ruling that found the three had conspired to acquire mobile software development shop Xtreme Labs at a discounted price, in addition to breached contractual obligations with EVP. The lawsuit began in 2014 when Sharma, Bashir, and Teslia filed a claim of ~$200M in damages against Madra and Varma, alleging that the pair had conspired with Palihapitiya, also a former Facebook VP, to hide an interest in dating app Tinder as part of a sale of shares in dev studio Xtreme Labs. The plaintiffs alleged that the two partners "misrepresented the financial status of Xtreme Labs," including the equity interest they maintained in Hatch Labs and the existence of Tinder. They argued that this misrepresentation led the trio to sell their shares in Xtreme at a discounted price.
by Meagan Simpson
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