comScore said it has settled litigation with Starboard Value LP, one of its biggest shareholders with a 4.8% ownership stake.
As part of the settlement, comScore is adding four directors to its board, expanding it to nine members.
Three of the directors will be Wesley Nichols, former senior VP, Strategy, at Neustar; Paul Reilly, former executive VP of Arrow Electronics; and Bryan Wiener, executive chairman of digital ad agency 360i. Another director is expected to be named shortly.
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comScore has been struggling with a re-audit since accounting issues turned up last year. The company has spent millions to have its books re-done. Its stock has been delisted. Its CEO was replaced. And the company won’t be able to release its corrected financial results till next year.
All of which has made plans to compete with Nielsen more difficult.
"We are pleased to welcome these highly respected, independent directors to our board, and to have reached an agreement with Starboard that we believe is in the best interests of all our shareholders,” said Sue Riley, comScore’s board chair. “The new directors will bring valuable experience and fresh perspectives to our company at an important time, and their addition represents another significant step forward as we seek to set a clear path forward for comScore. Having now substantially reconstituted the board and reached an agreement with Starboard, we continue to be laser focused on resolving the company's pending financial statement restatements and ensuring we deliver value to our shareholders."
The agreement calls for Starboard to dismiss its litigation against comScore.
"The appointment of these new directors will provide additional insights and valuable expertise to comScore as it continues to focus on profitability and growth,” said Peter Feld, managing member of Starboard Value. “We are pleased to have worked constructively with comScore to reach this agreement, which we believe will further strengthen the board of directors. We are confident that the newly reconstituted board will enhance value for shareholders and improve the company's financial reporting and operations."
