Big Technologies Settles £385 Million Investor Claim Amid Legal Turbulence

A listed technology company, Big Technologies, has reached a settlement with former investors that resolves claims they were unlawfully deprived of benefiting from its 2021 flotation. The settlement totals £38.5 million, leading to a substantial increase in the company’s share value.

Big Technologies, which provides electronic location tagging services, faced criticism after shareholders alleged they were unfairly excluded during Big’s acquisition of Buddi, a company it bought prior to its public offering. These investors claimed they were denied an opportunity to reinvest, thereby missing out on the stock market flotation that valued Big at approximately £577 million.

Initially, Big Technologies denied the allegations but later indicated that its position was based on untrue statements from Sara Murray, the founder and former chief executive of Buddi. Following a series of disputes, including claims of forgery against Murray, the company acknowledged it was unlikely to defend several key elements of the investors’ claims successfully.

The settlement will see Big initially pay £31.5 million to the affected investors, with the remaining amount disbursed over 18 months. This resolution aims to bring closure to the uncertainty faced by the group following protracted legal battles.

Sangita Shah, the interim chairwoman of Big Technologies, expressed that the settlement was a critical step for the company, reducing ongoing legal costs and stabilising investor confidence. Following the announcement, analysts noted that the settlement could render the company’s shares more appealing to investors.

Big Technologies currently faces scrutiny over its claims against Murray, which are under investigation by the Takeover Panel and the Financial Conduct Authority. Allegations include the forging of documents that purportedly facilitated the company’s flotation process, raising questions about the legitimacy of previous transactions.

As the legal landscape continues to evolve, the outcome of these proceedings will be crucial for the future of Big Technologies and its stakeholders.