Alphonso's co-founder initiates legal action against appraisal company Kroll.
In a significant turn of events, co-founder of television data measurement startup Alphonso, Lampros Kalampoukas, has filed a lawsuit against risk and financial advisory services firm Kroll. The lawsuit, filed in Manhattan Supreme Court, addresses Kroll's June 18, 2025 valuation report, which Kalampoukas claims undervalued Alphonso by nearly $100 million.
According to the suit, Kroll allegedly changed its valuation methodology for the second tender offer, using "excess cash" instead of total cash. This change resulted in a nearly $100 million reduction in the company's worth. The dispute centers on whether Kroll applied appropriate methodology when calculating Alphonso's equity value, with the plaintiff alleging that improper techniques artificially reduced the valuation.
The complaint accuses Kroll of professional misconduct for manipulating the valuation process to suppress Alphonso's value. If Kroll had used total cash instead of "excess cash," the final tender offer price would have been over $10 per share higher.
The ongoing legal battle between Alphonso founders and Kroll comes amidst the connected TV advertising sector's rapid growth. Companies like LG Ad Solutions, which has entered strategic partnerships and innovative advertising formats such as screensaver ads, are expanding globally. The resolution of valuation disputes in this market could set important precedents for future transactions.
Interestingly, the ongoing legal battle between Alphonso and Kroll has not prevented LG Ads from continuing its business operations. Raghu Kodige, who was appointed as CEO of LG Ads in July 2021, has been leading the charge.
The lawsuit seeks damages, pre-judgment interest, costs and expenses, counsel fees, declaratory relief, and clarification of the legal relations between the parties. The case underscores the tensions that can arise when high-growth technology companies are acquired by larger corporations with different strategic objectives.
The lawsuit filed by Lampros Kalampoukas against Kroll highlights the importance of accurate valuations in high-stakes corporate transactions. As the connected TV advertising market continues to evolve, it is crucial that all parties involved maintain transparency and adhere to professional standards, as published by the American Institute of Certified Public Accountants.
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