E-district reported that for the 17 months ended 31 December 1999, revenue was £781,571, and that revenue for the six months ended June 30, 2000 was more than £1 million. However, the investigations have shown that based solely on information obtained from sales agencies, these revenues were approximately only £98,000 and £32,000 respectively.

Cap Gemini Ernst & Young also found that e-district's published registered users and page impression data cannot be guaranteed.

The company announced in mid-February that it had suspended chief executive Steven Laitman. Subsequently he was dismissed from the company and an injunction was served to freeze his assets. Proceedings for damages were also started against him. Additionally, e-district suspended two senior managers, one of whom resigned.

The e-district board said it is continuing with its investigations and considering its current options with its advisers in order to maximize shareholder value. It added that the Metropolitan Police Fraud Squad had been notified, and that further announcements would be made as appropriate.

The company said that "absolutely no blame" would be laid on PwC (e-district's auditors throughout the process).

E-district.net was established in 1998 and floated in March 2000. It has agreements with a number of major platform suppliers, including Telewest and NTL.

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