EVP forced to lodge $750,000 with court to keep Strong Room claims alive
The Sydney venture capital firm has been ordered to put up security funds to continue pursuing Strong Room defendants as its bid to recover $10.4 million grinds through the courts.
It has cost Sydney-based VC EVP $750,000 just to keep its lawsuit seeking to recover $10.4 million from the collapse of Strong Room Technology alive.
The Federal Court has ordered the firm to lodge the sum as security before it can continue pursuing claims against entities linked to businessman Divesh Dipak Sanghvi.
According to documents lodged on 4 February, the court directed EVP to pay the money as security for legal costs relating to three defendants — Sanghvi personally along with his associated companies, Morton Court and Pharmarix.
The money is not a fine, not damages, and not a finding of wrongdoing. It is held by the court while the case plays out.
