Tens of millions have been wiped from the wealth of the founders of WANdisco after shares in the scandal-hit tech business plummeted 96% as its stock was re-admitted to trading for the first time in months.
The fortune of co-founder and former CEO David Richards, who once had a net worth of £38 million according to an Evening Standard analysis, has been all-but wiped out as his stake in the business is now worth just £920,000, while co-founder Yeturu Aahlad has seen his shares sink in value from £48 million to £1.2 million.
Earlier this year WANdisco had been eyeing a US listing of its shares, but in a shock announcement to the stock exchange in March, it tore up its guidance for 2022 and said an investigation was under way to identify its “true financial position” after sales booked by an employee appeared to have been inflated in what it called “significant, sophisticated and potentially fraudulent irregularities.”
The software firm later revealed that its bookings should have been $11.4 million rather than $127 million. The financial watchdog has since begun an investigation into the discrepancy.
The scandal led WANdisco to suspend its shares, with Richards and finance boss Erik Miller stepping down from the business.
WANdisco said the departures were not connected to the investigation.
Richards said: "I am sad to be leaving WANdisco after 18 extremely enjoyable years. I remain a passionate supporter and significant shareholder of the Company."
WANdisco completed a capital raise of £23.8 million at 50p per share earlier this month in a bid to shore up its finances. Its stock was already trading below that price after markets opened this morning.
