PokerMaster faces more problems: lawsuit filed against rooms' owners
One week after the Chinese "attack" to PokerMaster which included the blocking of hundreds of bank accounts (related to half of the PokerMaster alliances), a lawsuit was filed against Momo for fraud. But, these are not the only problems with the law that Momo has to face right now. In this article, we'll study the facts in detail.
The PokerMaster parent company is awaiting trial in the United States
A few days ago (June 11th, 2019), the law firm Kessler Topaz Meltzer & Check reported they had filed a lawsuit in the United States District Court for the Southern District of New York against Momo Inc. for fraud.
Momo Inc. was founded in 2011 in Beijing, and it's focused on the development of mobile applications. The most famous is the homonymous messenger, and since 2015 is one of the largest shareholders of PokerMaster. Kessler Topaz Meltzer & Check represents the owners of Momo shares who acquired them from April 2015 to April 2019.
What is the essence of the claims against Momo Inc.?
In short, the lawsuit argues that crucial information was hidden from the shareholders, which at the end, led several times to a drop in the price of Momo shares. At the same time, the Momo representatives not only kept silent about their problems but also claimed success, actively influencing the market.
It turned out that the developers have big problems with the Chinese authorities related to several of their applications:
- Momo Messenger was used to distribute sexual content, and its creators did not take action on it;
- The dating app Tantan was removed from some mobile stores at the request of the Chinese authorities because of Momo Inc. didn't want to agree to modify Tantan to comply with the local laws;
- PokerMaster hosted illegal games for real money, for which the owners of half of its alliances paid with their money;
- It was also hidden that problems arose with the financial reporting, because of which three company directors resigned for "personal reasons."
In total, the company's shares after the disclosure of the above information fell over 10%. It's still unknown for how much money are the Kessler Topaz Meltzer & Check clients suing Momo Inc., but the final figure should be known before the trial.
The above problems, this time with the US authorities, may put an end to PokerMaster faster than the struggle of the Chinese police against the club's owners. After all, Americans proved to be very effective in shutting down illegal gambling companies, especially with hundreds of US citizens playing at PokerMaster. In this regard, when PokerStars "asked" non-Chinese citizens to leave Red Dragon Poker, they turned out to be very far-sighted.
Worldpokerdeals strongly recommends to all players completely forget about PokerMaster and the possibility of joining games there. Reach our team to get advice on the best poker rooms to keep playing.
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