Julian Singer discloses 4.9% stake in Support.com, urges strategic alternatives
Julian Singer disclosed a 4.9% stake in Support.com, which represents 929.7K shares of common stock and allows for activism. The filing discloses that "the Reporting Persons have engaged, and plan to continue to engage, with the Issuer's management and board of directors regarding opportunities to unlock shareholder value. The Reporting Persons believe that the Issuer's recent grants of restricted stock units to Board members are excessive and without merit, and raise serious concerns as shares of Common Stock are trading significantly below their share price from one year ago, with the Issuer's enterprise value lower than the cash on its balance sheet. Given the $10 million monetary judgment that the Issuer agreed to pay to the Federal Trade Commission (the "FTC") earlier this year as part of a settlement to resolve the FTC's allegations of deceptive practices, and the loss of a substantial contract that the Issuer has yet to quantify, the Reporting Persons believe that the issuance of free stock is even more concerning. The Reporting Persons have questioned the Issuer's inaction with respect to a cash distribution to shareholders and believe that the Issuer did not provide adequate rationale for failing to do so. The Reporting Persons believe that the Issuer should evaluate potential strategic alternatives to maximize value, such as by exploring a sale process."