Meta Health’s board of directors have filed an originating claim in the general division of the High Court against Chua Kheng Choon, Koh Gim Hoe, Leow Siew Yon, Kelvin Lee Ming Hui, Mak Peng Leong Philip and Hong Shieh Yung Travis, over its acquisition of Gainhealth. The company is seeking relief of $7.3 million.
Chua is the founder of Meta Health and was its executive chairman and CEO from Dec 22, 1998, to June 6, 2022.
Koh, Leow and Lee were independent directors of the company. Koh served from May 11, 2016, to April 29, 2024;. Leow served from Jan 1, 2021, to June 29, 2022; while Lee served from April 10, 2021, to April 29, 2024.
Hong is a business associate and an agent of Chua.
On June 8, 2021, Meta Health, then known as Metal Component Engineering, acquired an 85.07% stake in Gainhealth for $4.25 million. Gainhealth operates a general practitioner clinic with an in-house pharmacy known as Gainhealth Clinic and Homecare. The business also has an e-commerce arm that operates multiple online e-commerce portals.
As a result of the acquisition, Meta Health believes it has suffered losses and reputational harm.
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According to the company’s Sept 11 filing, it is suing all six defendants for unlawfully conspiring to act against the company’s interests. In addition, Chua was sued for breaching contractual duties owed to the company, while Chua, Koh, Leow, Lee and Mak were alleged to have breached statutory and/or common law duties owed to the company.
Hong was said to have “dishonestly assisted” in Chua’s breaches and knowingly received the company’s assets.
Depending on the timing and outcome of the legal proceedings, Meta Health says it is currently unable to quantify the impact of the legal proceedings on its financial performance for the FY2025 ending Dec 31, 2025.
As at 9.02am, shares in Meta Health are trading 0.1 cent higher or 16.67% up at 0.7 cents.
