This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

TheDeal: Bebo Founders Reclaim Company

Bebo filed for Chapter 11 protection on May 9.

According to court papers, the company lost more than $2 million over the past year and nine months because of falling revenue and has many outstanding liabilities. Revenue in 2012 fell to $1.22 million, from $2.28 million a year earlier.

A group of minority shareholders sued Criterion, majority owner Adam Levin, Bebo director Tristen Lazareff and Bebo on March 5, 2012, in the Superior Court of the State of California in San Francisco, alleging charges including breach of fiduciary duty, gross mismanagement, unjust enrichment, waste of corporate assets and abuse of control. The plaintiffs include Hecker Consultancy LLC, which owns 14.92% of Bebo; MXB, which owns 9.79%; and SV Angel LLC, which owns 1.96%.

The suit faulted the defendants' alleged operation of Bebo for more than 20 months without a shareholder or board meeting; alleged use of operating funds to pay Bebo staff that also work at Criterion; and alleged charging of unfair management fees and rent.

The action sought relief including restitution, unspecified damages and appointment of a receiver.

Ong was appointed as receiver on March 5. (The status of the remainder of the litigation was unclear from court papers.) A day later, Bebo Web hosting adviser Quality Technology Services Santa Clara II LLC threatened to terminate all of Bebo's services if the company could not pay $118,518 by May 10. Bebo owed the company for data services.

In its official schedules filed May 23, Bebo reported assets of $27,085 and liabilities of $1.76 million.

Matthew A Lesnick and William F. Govier of Lesnick Prince & Pappas LLP are debtor counsel.

Michael St. James of St. James Law PC represents MXB.

-- Written by Aviva Gat in New York

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs