Great Hill Gets Only $212,000 From Plimus Fraud Suit (Corrected)

The ex-CEO and former owners of online payments company Blue Snap Inc. owe its private equity buyers only about $212,000—not $122 million—for fraud during the deal and breaches of the merger agreement, a Delaware judge ruled Thursday.

The Chancery Court lawsuit alleged fraud by CEO Hagai Tal, one other executive, and the co-founders of Blue Snap, formerly called Plimus, which acts as a middleman between processors like PayPal and often-unreliable online retailers.

It accused them of duping Great Hill Equity Partners into buying Plimus by concealing its strained relationship with PayPal and other payment processors. Several of the processors, including ...