Recently, The Times has reported that crowdfunding investors are weighing whether or not they should take legal action in reaction to the shutting down of UK-based hybrid real estate agency, Emoov.
The Times reports that crowdfunding investors are considering legal action following the collapse of Emoov.
The investors in question appear to be some of the individuals who put forward almost £2m to the defunct agency when it staged its most recent crowdfund on the platform Crowdcube over the summer.
Crowdcube has reportedly received over 20 formal complaints about the Emoov pitch.
The Times says: “Investors claim that they were misled over the financial position of Emoov.”
It continues: “Before they invested, prospective backers were told that the merger [between Emoov, Tepilo and Urban in the spring] had ‘attracted an additional £6m from existing shareholders’.”
Emoov’s founder and chief executive Russell Quirk told The Times that critical funding that had not been received by Emoov - and that allegedly therefore led to its collapse last week - was separate to the £6m outlined in the crowdfunding pitch. “He said he had no reason at the time to suspect that further funds it needed would not be forthcoming” The Times says.
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