News Summary

Backblaze, a cloud storage and backup solution provider, is under scrutiny following allegations of ‘sham accounting’ and insider trading. The accusations were made public by Morpheus Research, which detailed claims from two former employees, Huey Hall and James Kisner. Hall, the former head of finance, and Kisner, the former VP of investor relations, accuse the company’s founders of engaging in aggressive trading plans and pressuring employees to certify inaccurate financial statements. Backblaze, which went public in November 2021, is said to have disregarded advice from capital markets consultants, resulting in a significant drop in stock value. The company has dismissed these allegations as baseless.