5:01pm PT by Ashley Cullins
Billionaire Sues Mobli Media for Exaggerating Leonardo DiCaprio's $10 Investment
A tech startup is being sued for overhyping a $10 investment by Leonardo DiCaprio to trick others into putting up millions, according to a lawsuit filed Wednesday in Los Angeles County Superior Court.
Shlomo Rechnitz, a nursing home magnate reportedly worth about $2.5 billion, is suing Mobli Media and several individuals for fraud.
"Defendants' scheme created the false appearance that Mobli was a well-capitalized business with investor support from renowned investors and celebrities," writes attorney Patricia Glaser in the complaint, which is posted below.
Those purported investors included DiCaprio and billionaire Carlos Slim, both of whom were still touted on the company's website at press time.
A 2011 press release quoted in the complaint claims the actor was part of a group that invested $3 million and that he took on a consulting position to shape the company's content and social strategy. It also includes a quote that is attributed to the star. (DiCaprio's reps have not yet responded to a request for comment.)
A December 2016 Bloomberg article quoted in the complaint claims DiCaprio invested "$9.54 in exchange for almost a million shares."
Relying on the false claims, Rechnitz in 2014 invested $4.75 million in Mobli securities, according to the complaint. He is suing for securities fraud, negligent misrepresentation and unjust enrichment, among other claims.