Shares in Big Technologies slide as legal row with ex-CEO ramps up

(Sharecast News) - Shares in Big Technologies came under pressure on Friday, after the AIM-listed firm's legal dispute with its founder deepened. Sara Murray was chief executive of Big Technologies, a provider of electronic monitoring services, until March this year, when she was sacked and referred to the Takeover Panel.

Big Technologies has since launched legal action against Murray, claiming she had extracted "significant sums" from the group - thought to be in excess of £19m - via undisclosed interests in various offshore shell companies.

In particular, the claims relate to Murray's relationship with Zinc Ltd, Monitoring Partners, RCP and Romelle, which held a stake of around 17% in Big Technologies at the time of its 2021 initial public offering.

Murray has denied the accusations. In June, she wrote to selected shareholders, claiming the board was "unfit for purpose" and that she did not "own or control any of the companies cited".

However, on Friday Big Technologies said it was seeking to expand its claim against Murray, which is now in the High Court.

It said: "Additional matters have now come to light which further materially adversely impact the position of the company and Buddi in the Buddi litigation. These matters centre on the forgery or deliberate falsification by Sara Murray of various documents, including board minutes of Buddi and emails."

The separate Buddi litigation alleges that when Big Technologies acquired Buddi in 2018, the claimants were wrongly forced or "induced through misrepresentation" to sell their shares. Nor were they given the opportunity to reinvest in Big Technologies.

Murray, who founded Buddi in 2005, denied the latest allegations when put to her, the company said.

Big Technologies said it had concluded that it and Buddi are "unlikely" to be able to successfully defend "material elements" of the claim.

However, it continued: "The claimants' case is still, in the company's view, flawed and is therefore denied on a number of other bases."

Alexander Brennan, chair, said: "The new developments announced today are of a very serious nature and have important implications for the company's proceedings against Sara Murray, as well as its position in the Buddi litigation.

"While the board has been successful in enabling the executive team to focus on the group's strategy and delivering for shareholders without the distraction of litigation, we very much hope mediation can be achieved so that all parties can move forward efficiently."