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Mass email giant accused of inflating member count

August 21, 2018 GMT

The Securities & Exchange Commission sued the former chief financial officer of email marketing giant Constant Contact, claiming he knowingly inflated the company’s official subscriber count to outside investors.

Two more executives settled charges that they were complicit in the scheme while running Burlington, Mass.-based Endurance International Group Holdings, which acquired Waltham, Mass.-based Constant Contact in 2016.

The SEC investigated whether former Constant Contact CFO Harpreet Grewal hid slowing customer growth and inflated subscriber counts in communications with investors. Endurance paid $8 million in June to settle the case, with former CEO Hari Ravichandran paying nearly $1.4 million in a separate settlement announced Tuesday.

Alex.Soule@scni.com; 203-842-2545; @casoulman