In a statement on its web site, the company’s Board of
Management said:
“World Online is fully co-operating with
this investigation. World Online welcomes the opportunity to end
the rumours and allegations which have been circulating with
respect to the company after the [flotation]. The company will
provide the authorities with all the help and information it can in
order to allow a full and speedy investigation to take place.”
World Online’s shares fell sharply after the company’s flotation
following allegations that founder and then-Chairwoman Nina Brink
sold two thirds of her stake in the company in advance and at a
fraction of the offer price without declaring her sale. She sold
the shares to three investment companies, one of which began
selling its holdings almost immediately after the flotation. It was
alleged that Ms Brink would share in the company’s sale profits.
This led to the raising of a class action on behalf of investors.
Ms Brink was forced to resign.
If the Justice Department finds evidence of illegal action, the
offenders could face fines and/or imprisonment.
