Photon faces legal claim over earn-out allegations

Photon’s bumpy start to the year has continued with the marketing company facing legal action for a former director of one of its companies.  

Today’s Sydney Morning Herald reports that the company faces a legal action from a former shareholder in iMega, which was bought by Photon. Janina Fabig claims she is owed $4.4m in earn-out fees.

Photon CEO, Matt Bailey, said: “We don’t see any basis for the claim, so it’s not appropriate to comment.”

Last week Bailey announced he would quit the company, citing the regular journey from his home in Melbourne to Sydney as being the reason.

And earlier this week, Photon announced that its profits for the first half of the financial year would be significantly down on its previous predictions. It blamed its exit from its disastrous internet university venture Geekversity.

Photon shares are currently trading at $1.54 – giving it a market valuation of $189m. At their peak, Photon shares traded for in the region of $7.

Among Photon’s agencies are Naked, BMF, BWM, Frank, Mark and Kinetics.


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