Digital marketing and advertising firm Taptica (LON:TAP) was reeling after chief executive Hagai Tal offered to resign last night.
Tal was found liable yesterday for certain statements made in relation to the sale of Plimus in 2011, where he was chief executive and a shareholder.
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Reference to the legal action was made in the company’s AIM admission document said the company.
The plaintiffs in the case are entitled to restitution for breaches of certain representations and warranties.
Other board members are now considering whether to accept Tal’s resignation.
Trading has been going well since the interims in September, they said, though revenues will be lower than forecast due to the culling of some lower margin sales.
Underlying profits [EBITDA] have grown in line with market expectations with margins ahead of forecasts, said the statement.
Cash generation was also as expected, said Taptica.