Taptica (TAP) chief executive Hagai Tal has resigned after being found liable by a US court for certain statements made in relation to the sale of Plimus – a company of which he was both a shareholder and chief executive at the time of its sale in August 2011. Head of Taptica’s performance advertising segment Rivi Bloch has been appointed to the top job on an interim basis.
Taptica had disclosed that case in its 2014 admission document, when it listed on the Alternative Investment Market as Marimedia. Private equity firm Great Hill alleged that Mr Tal and others concealed material facts about Plimus’s relationships with its payment processors and its compliance with credit card regulations when it was sold e-payments business Plimus for $115m in 2011. Mr Tal and his co-defendants deny the allegations.
While the market reaction reflected inevitable shock, the group sought to reassure the market that the case "bears no direct impact on Taptica from a structural, financial or operational point of view". A spokesperson for Taptica said Mr Tal had no intention of liquidating his 14 per cent stake in the group.
Taptica also said it anticipated cash generation and cash-profit growth in line with expectations for 2018, thanks to a higher-than-expected margin. However, revenues will sit below expectations after some lower-margin sales were relinquished.