Cahn claims company deliberately shifted Moniker’s revenue to other Oversee.net entities.
The amended complaint includes new details regarding how Oversee.net allegedly affected Moniker’s revenues after the acquisition.
First, Cahn explains that the acquisition violated Oversee.net’s advertising agreement with Google because of Moniker’s TrafficClub service. This forced Oversee.net to shut down TrafficClub upon the acquisition.
Second, Cahn claims that Moniker was Oversee.net subsidiary SnapName’s second best performing registrar at the time or the acquisition. Moniker received 70% or 80% of revenue SnapNames made selling domains from Moniker, or about $700,000 annually, according to the complaint.
But when Network Solutions ended its agreement with SnapNames, Cahn says Oversee.net used the Moniker revenue share payments to obscure the revenue impact:
In order to disguise and prevent the Oversee Board and others from recognizing the disastrous effect of the departure of Network Solutions, after the merger, Oversee improperly diverted Moniker’s registrar revenue to SnapNames, thereby artificially deflating Moniker’s EBITDA.
Cahn still claims Fraud in addition to breach of contract claims.