StrongRoom AI director pushes back on EVP claims over $7.5m deal
New court documents reveal how EVP is attempting to recover funds tied up in the collapsed startup, and how a key defendant in the VC firm's lawsuit is pushing back.
The founder of a company acquired by collapsed medtech StrongRoom AI for $7.5 million has pushed back against an attempt by the startup's major investor EVP to claw back those funds.
In new documents filed with the Federal Court by law firm Maddocks, former Member Benefits Australia founder and CEO Divesh Sanghvi, who was also a director at Strongroom AI, largely declines to address a series of claims made by EVP about the transaction.
But in his defence, Sanghvi argues two related entities he controls, Pharmarix and Morton Court "received the monies under existing and enforceable contractual rights" and if they were ordered to "disgorge the monies, they would be left with unsecured claims against SRT [Strongroom] which is now in liquidation."
Sanghvi also argues that EVP became aware of "alleged wrongdoing" at StrongRoom AI on or around March 19 but did not act to unwind the transaction and kept exercising its investment rights.
