Meta Health has entered into a settlement agreement with former top executives from two of its subsidiaries, for the payment of $136,831.82 to the company in nine separate tranches starting from September.
The two executives, Dr Vasanthan Metupalle and his spouse, Jagannathan Padmaja Sakthi, were the former chief medical officer and director of 5Digital and GainHealth respectively. They are to pay the settlement sum following the receipt of demand for payment, after failing to pay an outstanding amount of $336,831.82 last January.
In May 2023, Gainhealth and 5Digital commenced legal proceedings against Dr Vasanthan, Sakthi, as well as 1Life Healthcare and Aventres Enterprise Limited, two entities which were not part of Meta Health.
All were accused of deceiving the group following the discovery of “alleged irregularities” in some of Gainhealth’s sale transactions in March 2023. The lawsuit sought to recover some of the group’s losses and wrongful payments made in connection to the transactions.
Meta Health announced on Sep 15, 2023, that Gainhealth and 5Digital had been awarded about S$1.4 million in damages and costs. Of that sum, about S$1.3 million will be payable with interest at 5.33 per cent per annum from the date the originating claim was filed.
Dr Vasanthan and Sakthi agreed then to pay the full amount of damages claimed by Gainhealth and 5Digital in the lawsuit, as well as contribution towards costs.
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Meta Health filed a bankruptcy application against Dr Vasanthan and Sakthi earlier this March, and sent a receipt of demand for payment two weeks later.
The final settlement sum of $136,831.82 was agreed after mutual negotiation between the parties, taking into account a disputed pre-existing payable of $200,000 owed by 5Digital to Dr Vasanthan and Sakthi.
Shares in Meta Health closed flat at 0.7 cents on Sept 15.
