Automobile marketplace Droom on Wednesday said that the United States Department of Justice (DOJ) has dropped all charges against its founder and CEO Sandeep Aggarwal in an insider-trading case from 2013. In addition, the US Securities and Exchange Commission (SEC) has also reached a civil settlement with Mr. Aggarwal relating to the same case.
“Both the matters have been resolved. The charges by DOJ have been dropped and dismissed. A civil penalty of $32,500 was levied by the SEC, which I have paid. The bar on being associated with any investment advisor, broker and securities analysis — which I quit long ago — continues,” Mr. Aggarwal said.
He was charged by the DOJ and sued by the SEC in July 2013, relating to events that took place in July 2009, when Mr. Aggarwal was a Wall Street analyst.
Mr. Aggarwal added he was confident of Droom turning profitable by November this year and was aiming to list the company on Nasdaq by mid-2021, when the company achieves $3 billion GMV. While the company had set its eyes on a Nasdaq listing, Mr. Aggarwal said they could also look at Singapore stock exchange or the Hong Kong stock exchange for listing.
Additionally, the company is looking at raising about $150 million in a pre-IPO round.
“...I am very grateful that the U.S. justice system agreed that the dismissal of all charges against me was the right and just result. Now, we can put this permanently behind us and focus on implementing our long-term vision to permanently change how automobiles are bought and sold in the 21st century,” Mr. Aggarwal said.
Founded in April 2014, the company claims to be the largest online automobile platform and the fourth-largest e-commerce company in India.