ComScore is taking “significant actions,” including axing seven board members, in hopes of righting the ship.
The company announced the departure of directors William Engel, Russell Fradin, Lisa Gersh, Mark Harris, William Henderson, Ronald Korn and Joshua Peirez—all leaving at the recommendation of Jacques Kerrest and Sue Riley, two independent directors who recently joined the company’s board.
"Since joining the Board, the members of the Special Committee have immersed themselves in the challenges and opportunities the Company faces and are working closely with the Company's management and the other Board members to move the Company forward. The announcements we are making today are strong and positive steps in the right direction. To that end, we are grateful to Messrs. Fradin, Harris, Henderson, Korn and Peirez, to Ms. Gersh and to Mr. Engel, who joined the Board through the Rentrak merger, for their considerable effort,” said Riley in a statement.
ComScore’s board is now down to CEO Gian Fulgoni, President and Executive Vice Chairman Bill Livek, Kerrest, Riley and Brent Rosenthal.
In addition to significantly paring down its board of directors, ComScore has moved quickly to appoint an interim financial chief after CFO David Chemerow left the company on Sept. 8. David Kay, co-founder and managing partner of CrossCountry Consulting, will join ComScore as interim CFO after his firm has been working with the company on its audit investigation.
In regards to the ongoing audit, ComScore said it will need more time to complete its financial restatement process.
"We regret the need to extend further the date for filing our restated financials and we share the frustration of our stockholders. However, to ensure the completeness and accuracy of the past four years of financial information we will be reporting and to ensure that we are also able to include audited financial statements for 2017, the Board has determined that additional time is needed," said Fulgoni in a statement.
Finally, the company said it has reached a settlement regarding a class action suit pitting ComScore against the Fresno County Employees' Retirement Association. ComScore said the stockholders in the class action will receive $27.2 million in cash and $82.8 million in ComScore common stock. ComScore settled a separate shareholder derivative action for $8 million in common stock.