Globalnet Financial, an on-line personal finance site, has
raised a £10 million claim at the High Court in London against
World Online, a Dutch ISP owned by Italian company Tiscali, stating
that World Online overstated subscriber figures and page views for
a deal signed in September 1999. It also claims that the company
failed to fulfil other conditions of the deal.
The allegation is the latest in a number of actions relating to
companies having inflated numbers during the dot.com boom. In
February, the CEO of the UK interactive games and chat web site
E-District.net was sacked after irregularities were found in the
company’s accounts.
Globalnet claims it made investments of around £10 million on
the basis of World Online’s undertakings and representations. It
says that World Online failed to keep promises made to promote the
Globalnet services on its internet portals in Europe.
Globalnet says World Online allegedly quoted subscriber figures
of 700,000 in Germany at the time of the September 1999 deal.
However, when the company was floated the following March, it noted
only 2,500 subscribers in Germany.
