SoftBank sues social app IRL for fraud, seeks USD 150 Million in damages
Image Credit: ETtech
SoftBank is suing social app IRL for fraud related to fake user base and growth, asking $150 million in damages. In May 2021, SoftBank paid $150 million to purchase IRL shares based on IRL’s valuation at $1 billion. In its lawsuit, SoftBank said that IRL CEO Abraham Shafi had claimed that his mobile app had been downloaded by 25% of US teens under 18 years old and IRL had 12 million monthly active users, growing at a “meteoric” 400% year-over-year rate.