Report Ripping Lew Dickey's Akazoo As A 'Castle Of Cards'

[Y2kTheNewOldies]

AKAZOO, the streaming music service chaired by former CUMULUS chief LEW DICKEY, is under fire after a report by QUINTESSENTIAL CAPITAL MANAGEMENT alleged that the company appears to be a "castle of cards" and "a scheme orchestrated by management to profit while egregiously deceiving investors" with users, subscribers, revenue, and profit "profoundly overstated." The report by QCM's GABRIEL GREGO at a conference on MONDAY (4/22) triggered both law firms probing whether to file shareholder suits and the company itself forming a special committee of independent directors to look into the allegations.

The companies claims are being investigated and a class action lawsuit is in the works against Akazoo


https://www.allaccess.com/net-news/...t-ripping-lew-dickey-s-akazoo-as-a-castle-of-

 

[TheBigA]

So now a report that Akazoo has fired its CEO:

https://www.allaccess.com/net-news/...o-fires-ceo-special-committee-finds-trouble-w

This is not a business that makes money. It might work if you combine it with other businesses the way iHeart or Sirius works. But the cost of music royalties exceeds the revenues, and sooner or later it will bite you.

 

[Kelly A]

If it looks like a turd and smells like a turd, then chances are good...

 

[MarkW]

Why am I not the least bit surprised a company acquired by what more-or-less is a single company investment fund run by Lew Dickey has turned out to be a 10 alarm dumpster fire?

If not for QCM's actions, I am sure clueless Lew to this day would have been oblivious to the fraud perpetrated by Akazoo's founder and seller. Note per the All Access article that Lew initially denied the validity of the accusations made by QCM.

It was only after Lew Dickey ordered formation of a special committee (likely following advice of outside counsel at Latham & Watkins), whose own due diligence wound up validating the accusations made by QCM, that Lew accepted the notion that fraud had been perpetrated upon him and other investors.

Only a total moron would invest their money in a company where Lew Dickey is Board Chairman. Just my opinion.

http://www.insideradio.com/free/lew...cle_6038bd7c-a05f-11ea-969d-0f3cae5e19a0.html

Lew better hope his Modern Media Acquisition Co. investors don't file a class action suit against him. I think it's a distinct possibility.