Jaffer was removed from his role as CEO final fall following his arrest on costs of assault with a lethal weapon and performing a lewd act on a toddler.
However, a San Mateo County judge subsequently dismissed the charges. The district lawyer’s workplace launched a press release providing extra context for the dismissal, saying that they didn’t imagine there was any sexual conduct on the night in query, and that “the injuries were the result of Mr. Jaffer being in a state of unconsciousness caused by prescription medication.”
So what’s subsequent for Jaffer and Vungle? There are hints in a latest letter from Jaffer’s lawyer, John Pernick, which was despatched to present Vungle CEO Rick Tallman.
TechCrunch has obtained a duplicate of the letter, which requests entry to Vungle’s information, particularly the names and addresses of firm shareholders. Pernick’s letter means that this may very well be a prelude to additional motion (emphasis added):
Mr. Jaffer is contemplating varied choices with respect to Vungle and his shares of Vungle. He has thought-about promoting some portion of his Vungle shares. However, he’s additionally contemplating pursuing a management change at Vungle via calling for a shareholders assembly for the aim of voting on a brand new board of administrators and/or buying shares of extra Vungle inventory. Communicating with Vungle shareholders with respect to their curiosity in buying or promoting Vungle inventory or in a change within the board of administrators is a completely correct objective for Mr. Jaffer’s request to examine the shareholder data that may allow him to make these communications.
When TechCrunch contacted Pernick, he confirmed the authenticity of the letter however declined to remark additional. A spokesperson for Jaffer additionally declined to remark, and Vungle didn’t reply to our inquiries.
As you may see within the quote above, the letter signifies that Jaffer is contemplating a number of programs of motion.
But if he decides to pursue a management change at Vungle, both by profitable over current shareholders or by buying a controlling stake within the firm, it seems like there are traders keen to again him — for starters, Jun Hong Heng at Crescent Cove Capital Management confirmed that his agency is working with Jaffer.
“We think Zain and Vungle have incredible potential,” Heng stated in a press release. “We sit up for working with Zain and giving him the help he wants to assist him regain management of his firm.”
We additionally reached out to Anne-Marie Roussel, who not too long ago resigned from Vungle’s board of administrators. Roussel stated by way of electronic mail that “the Vungle controversy is an interesting proxy for a much larger debate: the fuzziness surrounding ethical conduct in the tech industry.”
She added, “My personal prediction is that boards of tech companies will be held increasingly accountable for the ethics of the key decisions they make.” As for the way that applies to Vungle, she stated:
How does it replicate on moral values when a CEO is dismissed based mostly on presumption of guilt? Don’t we stay in a democracy the place one of many key authorized proper is “presumption of innocence” (as in a defendant is harmless till confirmed responsible). Upholding that precept by collaborating together with his protection crew was what led to my resignation from Vungle’s board.