Jains lodge InfoSpace suit
NEW YORK -- Naveen and Anu Jain, the husband and wife co-founders of one-time Internet high-flyer InfoSpace Inc, have filed a lawsuit charging the company and its advisers with negligence and breach of obligations.
Under Naveen Jain, InfoSpace carved out a place as one of the darlings of the 2000 dotcom boom, operating as an Internet portal services company. He left the company as CEO in December 2002 after a dispute with the board.
Last week a U.S. federal court ordered the Jains to repay the company $247 million from profits made illegally selling company stock. Naveen Jain called the judgment "unjust and legally incorrect" and said he would appeal, in a statement released on August 22.
Naveen and Anu Jain said Thursday they had sued InfoSpace and its former general counsel, brokerage J.P. Morgan Securities and stock transfer agent Mellon Investor Services for a series of mistakes, Reuters news agency reported.
The Jains said in a statement those mistakes led to the $247 million judgment against them.
The suit was filed in Washington State Superior Court.