Here’s why SoftBank has sued social app once valued at $1 billion

SoftBank is suing social app IRL for fraud. The Japanese investment giant is suing IRL after reports that most of its user base comprised “automated or from bots”. It has asked for $150 million in damages. SoftBank had paid $150 million to purchase IRL shares based on IRL’s valuation at $1 billion in May 2021. Incidentally, IRL is also being probed by the YS Securities and Exchange Commission (SEC) to determine whether the app violated security laws by misleading investors.

IRL was touted to become an event organizing alternative for Gen Z, who were claimed to be using Facebook less and less.