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Russian streaming firm sues Yandex over alleged executive poaching
By Chris Cooke | Published on Monday 28 November 2016
A Russian streaming service called Zvooq has sued local web giant Yandex over allegations the latter faked interest in investing in the former in order to poach key staff. According to Billboard, Zvooq has sued Yandex for $29 million in a breach of contract case.
The streaming music firm alleges that Yandex was one of a number of companies that had expressed an interest in buying into or acquiring its business, but that – in breach of a contract signed between the two companies as part of those negotiations – the larger web firm then headhunted its marketing director Varvara Semenikhina.
Zvooq co-founder Victor Frumkin told Billboard: “We had bids in hand from international as well as local strategic buyers, until Yandex staged actions which were clearly in breach of our agreement with them, and counter to civilised corporate morals and ethics”.
After joining Yandex, Semenikhina apparently took on a marketing role at Yandex.Music which, in terms of locally-based streaming firms, is Zvooq’s biggest competitor.
Yandex says it is aware and “very surprised” by the litigation, insisting that it “did not violate any agreements with Zvooq or poach its employees”.
A spokesperson added: “All statements from Zvooq are based on populist rhetoric and are not true. We will answer all legal claims in court as we are confident about our stand”.
Zvooq has filed its lawsuit in Cyprus where the service’s parent company is actually registered.