SoftBank seeks to sue a social app it had once invested in, IRL at a $1.1 billion valuation.
It is suing the now-defunct company for fraud, alleging $150 million in damages.
Background
IRL had the potential to become an event organizing alternative for Gen Z, who are using Facebook less and less.
It sought to materialize on this and its self-reported numbers were impressive enough to earn a $170 million Series C funding led by SoftBank in 2021.
However, earlier this summer, an internal investigation by its own board of directors found that 95% of the app’s users were fake.
False user download claims
SoftBank explains that it was encouraged to invest due to its impressive user numbers.
The app claimed it had been downloaded by 25% of U.S. teens under 28 years old and was growing at…
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