A quote from the SEC 424B1 filing:
"We
believe that our courses appeal to a broader range of employees than do courses
on information technology and other specialized topics, and assist in improving
employee retention by sending a positive message to employees that they are
valued. "
They're trying to teach BS skills over the internet! This is going to be a disaster. Canned soft skills courses like leadership and communication training over the internet are useless. Just give them a Tony Robbins corporate tape. It's much cheaper. LOL.
Another quote from the SEC 424B1 filing:
"SkillSoft, several of our executives, two of our key employees and our
largest investor are involved in a lawsuit brought by National Education
Training Group, Inc. (NETg), the former employer of these individuals. NETg
alleges in substance that the defendants breached their fiduciary obligations to
NETg in connection with the organization and operation of SkillSoft,
misappropriated trade secrets from NETg, intentionally interfered with NETg's
business and employees and breached provisions of a license agreement with NETg
relating to the use of its software. NETg maintains that the trade secrets
allegedly misappropriated by SkillSoft and the other defendants include:
- various aspects of the design and functionality of its education and
training software products;
- customer lists and information;
- distribution channels and relationships with course developers and other
service providers; and
- the business plan to develop soft skills products for use in a Web
environment.
The claims seek injunctive relief against the defendants demanding the
return, and no future use by these defendants, of the alleged trade secrets. The
claims also seek compensatory damages of $400 million, exemplary damages in the
additional amount of $400 million and punitive damages in excess of $10 million. Named as defendants in the lawsuit, in addition to
SkillSoft, are Charles E. Moran, Jerald A. Nine, Jr., Mark A. Townsend, Lee A.
Ritze, Dennis E. Brown, Warburg, Pincus Ventures, L.P., our largest investor,
and each partner of Warburg.
The lawsuit is still in discovery, and we are not yet able to assess the
potential liability of SkillSoft or the other defendants. Our failure to prevail
in this litigation could have any or all of the following significant adverse
effects on our business and financial performance:
- injunctive relief issued against SkillSoft and our officers, which could
restrict our ability to conduct our business;
- an adverse judgment against us for monetary damages;
- a settlement on unfavorable terms; or
- obligations we have to indemnify our employees for liabilities and
expenses they incur in connection with the lawsuit.
In addition, this litigation, regardless of its outcome, will continue to
result in significant expenses in defending the lawsuit and may divert the
efforts and attention of our management team from normal business operations.
See the description of this lawsuit set forth in "Business -- Legal Proceedings"
on page 40 of this prospectus." |
