InfoSpace founder Naveen Jain, who is in a legal battle with the company he headed until late last year, resigned from its board over the weekend, using his emailed resignation letter to repeat accusations of "improprieties and illegal activities of
the management team and certain board members," including the trading of votes for compensation deals.
An InfoSpace spokesman didn't return messages seeking comment. But last month, InfoSpace CEO Jim Voelker called similar allegations "just categorically false."
At the time,
InfoSpace sued Jain and his new company, Intelius, alleging that Jain breached his contractual and fiduciary duties to InfoSpace. Jain and Intelius, which is also populated by other former InfoSpace employees, focused their startup on public records search, a business that InfoSpace says will violate Jain's noncompetition and confidentiality agreements with the company he started in 1996.
On the bright side for InfoSpace, the stock did not appear to be suffering as much from the dispute's latest incarnation as it did the last time. Shares in the company, a provider of wireless and Internet software and application services, rose 7 cents Monday to close at $12.68.
After news broke of InfoSpace's lawsuit in early March, the company's shares fell 17% in one day, to $9.22.