Mu Sigma Founder Dhiraj Rajaram Sued For ‘Grossly Misleading’ Investors
Summary
Data analytics company Mu Sigma and its founder, Dhiraj Rajaram, have been accused in a lawsuit of “grossly misleading” its investors, in order to buy back their shares at a lower price, reported Bloomberg. In the lawsuit, Mu Sigma and its founder are accused of “grossly misleading” the investors six years ago, to redeem 17.5% ownership of the data-analytics outsourcing startup. The allegations are that founder, Dhiraj Rajaram, deliberately portrayed dim prospects of growth and performance, at a time when Mu Sigma was actually thriving. This was alleged to be done “to buy-out a significant shareholder at an artificially low price,” according to the complaint made public on Wednesday in Chicago state court. Walworth alleged that with the support a decade ago from Ryan, who is a part owner of the Chicago Bears professional football team, Mu Sigma was able to line up other backers including Microsoft Corp., Wal-Mart Stores Inc. and Dell Inc. Walworth also alleged that the motivation to commit such deceitful actions sprang partly from Rajaram’s religious beliefs.
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