Lawsuit Filed by Alphonso Co-Founder Against Valuation Firm Kroll
In a recent development, Lampros Kalampoukas, a co-founder of television data measurement startup Alphonso, has filed a lawsuit against risk and financial advisory services firm Kroll. The lawsuit, filed in Manhattan Supreme Court in New York County, alleges that Kroll deliberately undervalued the company by nearly $100 million.
The lawsuit claims that Kroll's valuation report, issued during a tender offer in 2025, violated the Statements on Standards for Valuation Services No. 1 published by the American Institute of Certified Public Accountants. Specifically, it accuses Kroll of professional misconduct for manipulating the valuation process to suppress Alphonso's value and allow LG Electronics to acquire shares at below-market prices.
The changed methodology used by Kroll reduced Alphonso's equity value by almost $100 million, potentially affecting the final tender offer price and the company's Initial Public Offering (IPO) plans. The lawsuit seeks damages, pre-judgment interest, costs and expenses, counsel fees, declaratory relief, and clarification of the legal relations between the parties.
The lawsuit highlights the importance of accurate valuations in high-stakes corporate transactions, particularly in the rapidly growing connected TV advertising sector. Alphonso, now known as LG Ads, specializes in advertising technology for smart TVs and provides a platform for advertisers to reach consumers on connected TV operating systems.
The relationship between LG Electronics and Alphonso's founding leadership deteriorated after the acquisition, leading to two lawsuits in 2023 over breach of contract and orchestrating a boardroom coup. The founders won both cases in Delaware courts, which ruled that LG Electronics had booted them from the LG Ads board in bad faith. The courts restored the founders to the board, upheld their IPO rights, and imposed restrictions on LG Electronics to prevent it from diluting minority shareholders or interfering with the IPO process.
Since then, LG Ad Solutions has been expanding its global reach through strategic partnerships. Notable partnerships include collaborations with Viant, Innovid, and Harmony initiative to advance addressability in Connected TV. Raghu Kodige was appointed as CEO of LG Ads in July 2021.
This lawsuit serves as a reminder of the importance of transparency and accuracy in corporate valuations, especially in the dynamic and rapidly growing field of connected TV advertising. The outcome of this case could have significant implications for the industry and the parties involved.
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