SwervePay’s former top executives sued its acquirers in Delaware, claiming they were duped into a basing the sale on post-merger milestones when Blue Star Innovation Partners and New Mountain Capital overstated the amount of revenue moving through its new sister company by nearly $30 billion.
The fraud lawsuit accuses Blue Star, New Mountain, and their affiliates of deliberately misleading the co-founder and ex-officers of SwervePay, a payment processor, about the operations of Ontario Systems LLC, the financial software maker the investment firms planned to combine it with.
Although BlueStar and New Mountain may initially have been honestly mistaken in their ...
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