Ozy Media became the darling of Madison Avenue in recent months, with advertisers seeing the media company co-founded by Carlos Watson as a way to reach not only younger, socially-conscious consumers, but also diverse audiences often underrepresented in their media budgets. Now Ozy is shutting down according to the New York Times, just days after scathing reports about the media company's business practices. 

“At Ozy, we have been blessed with a remarkable team of dedicated staff,” the company’s board of directors said in a statement to the New York Times. “Many of them are world-class journalists and experienced professionals to whom we owe tremendous gratitude and who are wonderful colleagues. It is therefore with the heaviest of hearts that we must announce today that we are closing Ozy’s doors.”

Earlier on Friday, GroupM was advising its clients to pause all ad campaigns on Ozy Media following reports of shady business practices that included overstating its audience size. The ad agency, which struck a deal with the media company co-founded by Carlos Watson, was recommending all of its clients take a step back as it evaluates the situation, according to a person familiar with these conversations. 

GroupM’s clients represented about $10 million in revenue for Ozy. 

In April, GroupM struck a two-year deal with Ozy as part of its “responsible investment” buying framework, which focuses on brand safety, data ethics, diversity, equity and inclusion, responsible journalism and sustainability. 

GroupM’s recommendation came on top of brands like Ford, Target and Airbnb also pausing their campaigns, according to the Wall Street Journal. 

On Sunday, the New York Times reported that Ozy’s Chief Operating Officer Samir Rao impersonated an executive from YouTube during a call with Goldman Sachs. Watson, who serves as CEO, said that the situation was a result of Rao’s mental-health issues. 

The article also revealed possible discrepancies in Ozy’s reported audience size. 

Since then, journalist Katty Kay resigned from the company, and Marc Lasry, an Ozy investor, said he was stepping down from the board. 

Ozy has been a hot property for Madison Avenue in recent months as brands look to spend more of their ad budget with Black and minority-owned media company. Ozy has also been looked upon as a way to develop closer relationships with younger, diverse audiences. 

Dentsu also struck a long-term deal with Ozy earlier this year as it too looks to move more of its ad dollars into “meaningful media.” An agency spokesperson did not immediately return request to comment.