INSUBCONTINENT EXCLUSIVE:
Zain Jaffer may be gearing up for a fight to take back control of Vungle, the mobile ad company he founded.Jaffer was removed from his role
as CEO last fall following his arrest on charges of assault with a deadly weapon and performing a lewd act on a child.However, a San Mateo
County judge subsequently dismissed the charges.The district attorney office released a statement offering more context for the dismissal,
saying that they did not believe there was any sexual conduct on the evening in question, and that &the injuries were the result of Mr
Jaffer being in a state of unconsciousness caused by prescription medication.&So what next for Jaffer and Vungle There are hints in a recent
letter from Jaffer attorney, John Pernick, which was sent to current Vungle CEO Rick Tallman.TechCrunch has obtained a copy of the letter,
which requests access to Vungle records, specifically the names and addresses of company shareholders
Pernick letter suggests that this could be a prelude to further action (emphasis added):Mr
Jaffer is considering various options with respect to Vungle and his shares of Vungle
He has considered selling some portion of his Vungle shares
However, he is also considering pursuing a leadership change at Vungle through calling for a shareholders meeting for the purpose of voting
on a new board of directors and/or purchasing shares of additional Vungle stock
Communicating with Vungle shareholders with respect to their interest in purchasing or selling Vungle stock or in a change in the board of
directors is an entirely proper purpose for Mr
Jaffer request to inspect the shareholder information that will enable him to make these communications.When TechCrunch contacted Pernick,
he confirmed the authenticity of the letter but declined to comment further
A spokesperson for Jaffer also declined to comment, and Vungle did not respond to our inquiries.As you can see in the quote above, the
letter indicates that Jaffer is considering multiple courses of action.But if he decides to pursue a leadership change at Vungle, either by
winning over existing shareholders or by purchasing a controlling stake in the company, it sounds like there are investors willing to back
him — for starters,Jun Hong Heng at Crescent Cove Capital Management confirmed that his firm is working with Jaffer.&We think Zain and
Vungle have incredible potential,& Heng said in a statement
&We look forward to working with Zain and giving him the support he needs to help him regain control of his company.&We also reached out to
Anne-Marie Roussel, who recently resigned from Vungle board of directors
Roussel said via email that &the Vungle controversy isan interesting proxy for a much larger debate: the fuzziness surrounding ethical
conduct in the tech industry.&She added, &My personal prediction is that boards of tech companies will be held increasingly accountable for
the ethics of the key decisions they make.& As for how that applies to Vungle, she said:How does it reflect on ethical values when a CEO is
dismissedbased on presumption of guilt Don&t we live in a democracy where one of the key legal right is &presumption of innocence&(as in a
defendant is innocent until proven guilty)
Upholding that principle by collaborating with his defense team was what led to my resignation from Vungle board.Letter to Vungle by
