"The ongoing corporate conflict between Alphonso and LG Electronics (LGE) has all the makings of a Netflix docuseries. In fact, Ashish Chordia, co-founder and former CEO of Alphonso, the TV data startup that became LG Ads after LGE acquired a controlling stake in 2021, is actually considering it. "I think I've got enough material. I'm not joking," he told AdExchanger."
"Speaking of material, in late November, Alphonso's founders fired their latest salvo, a lawsuit filed in the California Superior Court of Santa Clara County that seeks more than $1.5 billion in personal punitive damages as a result of an alleged breach of fiduciary duty. In plain English: LGE allegedly squeezed Alphonso's founders off the board, capped their profits at 15% and pocketed more than $100 million while blocking an IPO with the intention of buying them out cheap."
"'Look, we think a lot of bad things were done and we're going to prosecute to the maximum extent we can,' Chordia said. 'And we feel that discovery will show what we believe to be true based on what we already know.' The plaintiffs are asking for a jury trial and, if they win, they could be awarded up to $4.5 billion, because California's penal code allows for treble damages in cases of proven theft."
Alphonso founders filed suit in Santa Clara County seeking more than $1.5 billion in personal punitive damages for an alleged breach of fiduciary duty. The complaint alleges LG Electronics squeezed founders off the board, capped their profits at 15%, pocketed more than $100 million, and blocked an IPO to force a low-priced buyout. Plaintiffs demand a jury trial and could recover up to $4.5 billion because California law permits treble damages for theft. The filings assert a calculated pattern to erode minority shareholder value and remove founder protections. Former CEO Ashish Chordia said plaintiffs will prosecute to the maximum extent; LG Ads declined to comment.
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