Shares in Big Technologies, the London-listed maker of remote care products for the elderly, surged dramatically on Monday morning after the company announced a multi-million pound settlement to end a long-running legal dispute.
Shareholder Allegations Lead to Major Payout
The tech firm agreed to pay £38.5 million to former shareholders who alleged they were unfairly compelled to sell their stakes back in 2018, before the company's initial public offering (IPO). This legal action prompted an internal investigation by Big's board, which ultimately resulted in the dismissal of founder and former chief executive Sara Murray at the end of March this year.
Big Technologies stated the payment will be split, with £31.5 million payable immediately and the remaining £7.0 million to be paid in eighteen monthly instalments. Following this resolution, the company confirmed it is now seeking a separate settlement with Murray herself, aiming to have her cover the costs of the substantial payout.
Founder's Dismissal and Denials
The board dismissed Murray after accusing her of concealing her beneficial ownership in the business and forging documents related to a share restructure that occurred prior to the company's 2021 IPO on London's AIM market. The board claimed it repeatedly asked Murray about connections between her and a series of offshore trusts that together controlled around two-fifths of the company's share capital before the flotation.
In a statement, Big said: "Ms Murray denied any connection at any time prior to her dismissal, and it was not declared to the Takeover Panel or in the AIM Admission Document at the time of the IPO."
Murray has publicly denied these allegations. She told City AM she did not own or control the offshore companies, though she acknowledged connections to them. She also refuted the forgery accusations, labelling them as "a whole heap of false allegations by the company against me."
Market Reaction and Future Steps
The market reacted positively to the news of the settlement. Big Technologies shares jumped as much as 13 per cent to 98p in early Monday trading. This rise continues a strong run for the stock, which is up by approximately a third since the beginning of the year.
Sangita Shah, Big Technologies' interim chair, commented: "Today’s settlement is a positive outcome to the protracted Buddi litigation which draws a line under the significant uncertainty that the group has faced." She added that the board remains committed to direct discussions with Sara Murray to resolve the related proceedings "without further protracted litigation."
The company, known for its Buddi electronic monitoring devices, is now focused on closing this chapter and recovering the settlement costs from its former leader.
