Google CEO Sundar Pichai takes the witness stand in $600 million financial fraud case

Google parent Alphabet Inc Chief Executive Officer Sundar Pichai reportedly took the witness stand at the fraud trial of Ozy Media Inc co-founder Carlos Watson. According to a report in Bloomberg, Pichai testified that the search giant never intended to buy the startup for any amount of money.
At the fraud trial, Pichai denied any plans by Google to acquire the startup.Carlos Watson, Ozy Media’s co-founder, faces allegations of misleading investors about the company’s financial health and falsely claiming Google’s interest in buying Ozy.
The scandal surfaced when it was revealed that Ozy’s COO Samir Rao impersonated a YouTube executive during a call with Goldman Sachs, leading to the company’s downfall. Rao has admitted guilt and implicated the scheme as an attempt to deceive investors about Ozy’s profitability.

What Sundar Pichai told the court

Pichai told the jury in Brooklyn, New York, federal court that an acquisition of Ozy was never discussed but that Google did consider hiring Watson as head of its news programming. A $25 million investment in Ozy would have been part of that deal.
“Mr Watson was a critical part of Ozy Media, and we were considering making an investment in the company to make the transition easier,” Pichai explained. But “did you ever offer to purchase Ozy Media for $600 million?” prosecutor Dylan Stern asked.
“No,” replied Pichai. He said he had been introduced to Watson at a conference and then in a video interview for a possible Google job interacting with news outlets. Neither the hire nor the $25 million investment ultimately happened.
This counters Watson’s assertions used to entice a $20 million investment from another party after a deal with Goldman Sachs collapsed. Pichai mentioned only meeting Watson twice, once briefly at a conference and again during a job interview, which did not result in employment.

What led to Ozy Media’s collapse

The once high-flying media startup, Ozy Media collapsed after the New York Times reported in 2021 that Chief Operating Officer Samir Rao impersonated YouTube executive Alex Piper on a call with Goldman Sachs Group Inc bankers.