The CEO of the UK interactive games and chat web site
e-district.net has been suspended. The company says it has reason
to believe that he substantially overstated the figures for
registered users, page impressions and revenues.
The CEO of the UK interactive games and chat web site e-district.net has been suspended. The company says it has reason to believe that he substantially overstated the figures for registered users, page impressions and revenues.
In a statement on the company’s site, which presently blocks access to the normal site, the board of directors added:
“It is not clear over what period of time this overstatement has occurred but it could include all of 2000. The board is not aware of any misappropriation of funds. The board, together with its external advisers, has commenced a full investigation. The board has suspended Mr. Steven Laitman, Chief Executive Officer, with effect from Sunday 18 February 2001.”
In January, Steven Laitman’s trading statement reported a doubling of registered users to 3.4 million and monthly traffic figures up 360% on the previous quarter.
Steven Laitman owns 44% of e-district.net. The company’s board has now ordered a suspension of the quotation of e-district's shares.
See also: PwC calls for industry standards in site traffic monitoring, OUT-LAW News, 30/11/2000
