Defunct Ozy Media has filed a lawsuit against Ben Smith and Semafor, accusing them of stealing trade secrets. The legal action follows Ozy Media’s closure and alleges that Smith, a former executive, and Semafor misappropriated confidential information. This lawsuit intensifies legal tensions in the media industry and underscores the fallout from Ozy Media’s financial challenges, leading to its shutdown.
Ozy’s Allegations Against Ben Smith and BuzzFeed
Ozy Media, the now-defunct news website led by Carlos Watson, has filed a lawsuit against Semafor co-founder Ben Smith, BuzzFeed, and former BuzzFeed employees. The lawsuit, filed in Brooklyn federal court, accuses Smith of stealing trade secrets from Ozy, leading to the site’s collapse. Additionally, it claims that BuzzFeed breached a mutual nondisclosure agreement entered into during acquisition discussions in 2019.
In the legal action, Ozy asserts that Ben Smith willfully misappropriated trade secrets from the news outlet to establish his media company, Semafor. The lawsuit alleges that Semafor closely resembled Ozy and that Smith, during his tenure as BuzzFeed’s editor-in-chief, gained insights into Ozy’s operations when BuzzFeed attempted to acquire it.
The lawsuit alleges that Ben Smith, post his tenure at BuzzFeed, wrote damaging articles about Ozy, labeling it the “Theranos” of media companies. Subsequent reports revealed discrepancies in Ozy’s claims, leading to board resignations and the eventual shutdown. Smith, accused of retaining an equity stake in BuzzFeed, is claimed to have benefited from negative stories about Ozy. The suit seeks to recover damages and profits resulting from Smith’s alleged misconduct.
READ ALSO: Defunct Ozy Media Sues Ben Smith, Semafor, Claims Theft of Trade Secrets
Response and Current Status
Ben Smith and Semafor have not yet responded to the legal action. The lawsuit aims to recoup damages caused by Smith and recover profits derived from the alleged misconduct.
Ozy contends that negative reports devastated the company, leading to its suspension, while Semafor, within a year of its launch, reportedly raised over $30 million in capital. The legal action seeks to address the disparate outcomes for Ozy and Semafor, holding Smith and others accountable for the fallout.
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