London Stock Exchange Group sued over alleged $175 million earnout fraud in Maystreet deal

London Stock Exchange Group’s subsidiary Refinitiv acquired US analytics firm Maystreet in 2022 for about $275 million, with an earnout clause that could add as much as $175 million for Maystreet executives based on post-acquisition performance. Former Maystreet chief executive Patrick Flannery alleges LSEG failed to incorporate its global data feeds into Maystreet’s products for nearly two years, preventing the company from meeting revenue goals and triggering the earnout.

Flannery filed a fraud and breach-of-contract lawsuit in Delaware last year against LSEG, Refinitiv US, Latitude Merger Sub and Maystreet, also claiming he was terminated after the filing. LSEG sought dismissal, but Judge Meghan Adams denied the motion, stating the plaintiff’s claims meet the minimal pleading standard. Flannery’s counsel said the decision clears the way for discovery and trial. LSEG maintains the allegations are unfounded and will not comment further.