BAMBOOZLED?

Ozy Media Hit With Hefty Lawsuit Alleging ‘Fraudulent, Deceptive, and Illegal Conduct’

LifeLine Legacy Holdings claims it “would never have invested in Ozy Media” if it knew about the company’s business practices.

Ozy Media, the embattled media company under fire for its business practices, is facing a pricey lawsuit from a Beverly Hills fund manager alleging that Ozy did not disclose significant issues and “engaged in fraudulent, deceptive, and illegal conduct.” In its lawsuit, LifeLine Legacy Holdings cites a conference call in which an Ozy executive allegedly pretended to be a YouTube exec to hype Ozy’s success to the Goldman Sachs team present on the call. LifeLine said that had they known “the foregoing facts, it would never have invested in Ozy Media.” Ozy announced on Friday that it had shut down. Lifeline notes in the lawsuit that its $2 million investment in Ozy was based on the belief that the media start-up “strong business performance, investments by high profile institutional investors, high viewer metrics, and competent and honest company management.” LifeLine asks the court for a jury trial, financial reimbursements of donations made to Ozy, and punitive damages.