The allegation is the latest in a number of actions relating to companies having inflated numbers during the dot.com boom. In February, the CEO of the UK interactive games and chat web site E-District.net was sacked after irregularities were found in the company’s accounts.
Globalnet claims it made investments of around £10 million on the basis of World Online’s undertakings and representations. It says that World Online failed to keep promises made to promote the Globalnet services on its internet portals in Europe.
Globalnet says World Online allegedly quoted subscriber figures of 700,000 in Germany at the time of the September 1999 deal. However, when the company was floated the following March, it noted only 2,500 subscribers in Germany.