Possible stock fraud and late expenses: what happens in DataRobot
On June 15, the information published an article in which it said that DataRobot's management was allegedly involved in fraud with the sale of shares and unjustified expenses against the background of a reduction in the company's profits. DOU tells you what's going on in DataRobot.
The main thing is what happened? In 2021, five top managers of the artificial intelligence startup DataRobot sold more than.32 million worth of shares to investors. The sale was unusual. First, according to the Information, the top managers who sold the shares, including CEO Dan Wright, worked at DataRobot for a year and a half or less. Second, the sales came after DataRobot received a private valuation of.6.3 billion in a funding round led by Tiger Global Management and Altimeter Capital. Third, about 1,200 employees, some of whom had worked for the company for almost ten years, could not sell their shares at peak value — they were simply not given this opportunity.The only problem is selling shares? No. Under the leadership of Dan Wright, the company's expenses for the quarter ended in April almost tripled compared to the same period in 2021, and amounted to 6 68 million. This caused discontent in the team. Moreover, DataRobot organized a trip for some employees to a resort in the British Virgin Islands. Wright then said that the trip was planned and paid for in advance.
However, the trip took place a few days before 7% of the staff was laid off from DataRobot, writes the Information.
Why did the company have financial problems? It is difficult to say definitively, because DataRobot itself does not officially talk about this. However, dissatisfaction among employees is due, in particular, to the fact that Wright promised high sales, although in fact the company only had more financial problems, writes the Information. For example, in the second quarter of 2021, the company lost a контракт 29 million-a-year contract with the U.S. Department of Health and Human Services.But DataRobot is a successful company, isn't it? Judging by the company's assessments and management statements, yes. "Five years ago, DataRobot was a cool place that everyone wanted to go. There was a tough selection process: up to seven interviews, half of which were coding. Everyone should have liked it. Although the salary was average: approximately 3 3 thousand for sinoirs," the source told DOU. Are there any official statements from DataRobot? There were no official statements, but the Information published quotes from DataRobot CEO Dan Wright's meeting with employees on June 16. Wright allegedly apologized for the fact that his board of directors allowed some executives to sell shares of the company last fall at peak prices, without giving other employees the same opportunity."I didn't understand how it would be perceived. I'm sorry about this, " Wright said.At the meeting, Brian Brown, DataRobot's general counsel, described the executives ' operations as "perfectly legitimate." UPD:
On July 16, it was reported that a senior researcher at DataRobot resigned from the company and sent a note to employees expressing outrage at the current situation. This was announced on Twitter by the executive editor of the Information Amir Efrati. He added a screenshot of a note that a DataRobot employee sent to colleagues:
DataRobot was founded in 2012 by two data researchers: Jeremy Erwin and Tom De Godoy. They have developed software that automates everything related to artificial intelligence: data collection and preparation, building models, training and scaling them, and data management.
The company has offices in Ukraine: Kiev, Lviv, Odessa, Khmelnitsky, etc.
DataRobot has successfully attracted a number of investments. For example, in 2021 it was 3 300 million, in 2020-$270 million. Before that - $206 million.
DOU sent a request for comment to DataRobot to clarify the company's position on the alleged problems.
