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.