SEC charges App Annie with securities fraud in $10 million settlement

  • App Annie will pay a $10 million settlement, according to the announcement, although the company has not admitted to any of the SEC’s findings.
  • According to the SEC, the company, which sells estimates on app downloads, usage and revenue, assured app businesses that the performance data they shared with App Annie would only be used in an anonymized way and run through an algorithm to generate performance estimates.
  • The SEC accuses App Annie and its former CEO and Chairman Bertrand Schmitt of reneging on that promise and using actual performance data to tweak its estimate models between 2014 and 2018.

“Here, App Annie and Schmitt lied to companies about how their confidential data was being used and then not only sold the manipulated estimates to their trading firm customers, but also encouraged them to trade on those estimates—often touting how closely they correlated with the companies’ true performance and stock prices,” Gurbir S. Grewal, director of the SEC’s Enforcement Division, said in a statement.

[Via]

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