I have received the material from Crowdcube for review. Specifically, the Legal Review.
It states “From time to time, payments networks have claimed that elements of its business model are not consistent with these rules, and although Curve operates within the regulatory landscape, the payment card networks set and interpret the card operating rules. Curve is engaged in active
discussions with these payment card networks in order to avoid impact to Curve’s customer offering. However, if such claims are not resolved, they may result in fines or require changes in its business practices that may be costly or have an adverse affect its business.”
I assume this relates to the ongoing dispute with AMEX but so that I can consider further what sort of risk this dispute poses to my proposed investment, please can you address the following queries:
- How many ongoing indivudal disputes do you face;
- How many claims/demands of the same of substantially the same nature have you faced historically:
- What is the value of the claim(s);
- Have proceedings been issued? Arbitral of Civil;
- If Civil Proceedings have been issued, what is the claim number and in which Court?
- If Arbitral proceedings have been issued who is the Arbitrator and when is the Final Hearing listed for;
- If proceedings have not been issued, what is the status of settlement discussions;
- Have you instructed Leading Counsel, if so who;
- A summary of Counsel’s opinion on the merits and propsects of success;
- Is there a counterclaim, if so for what;
- Counsel’s opinon on the merits of the counerclaim.
- When you say there may be an adverse affect on the business, can the business afford to trade through any adverse finding or would it have to cease trading.
- What jurisdiction are the disputes subject to.
I am content for you to provide to me this information privately and, if approproiate, subject to an NDA. However, this is crucial. Any institutional investor would be entitled to investigate the dispute before investing. I see no distinction between the level of due diligence and access to information which an institutional investor would have access to than a lay person investor.
I await your prompt repsonse given Crowdcube requires my confirmation within 7 days.