Suit by 15 investors against MYAirline founder to go to full trial

 

MYAirline Sdn Bhd co-founder Goh Hwan Hua and four other defendants were ordered to pay costs of RM8,000 to the plaintiffs.

PETALING JAYA: MYAirline Sdn Bhd co-founder and majority shareholder Goh Hwan Hua has failed to strike out a suit filed against him by 15 investors, with the case set to go on full trial next year.

Bernama reported that the investors had sued Goh and four companies at the Kuala Lumpur High Court for their alleged failure to pay monthly redemption value sums from their investment of over RM8 million.

“It is not a plain and obvious case for the court to strike out the plaintiffs claims and there are issues that need to be thrashed out during a trial,” said Justice Adlin Abdul Majid.

The four companies are e-commerce firm i-Serve Online Mall Sdn Bhd (ISOM), Bright Moon Venture PLT (BMV), QA Smart Partnership PLT (QAS) and Trillion Cove Holdings Bhd (TCH).

Adlin also ordered Goh and the four defendants to pay costs of RM8,000 to the plaintiffs.

She fixed Jan 24 for case management and Oct 14, 15, 21, 22 and 23, as well as Dec 16 to 19 next year, to hear the suit.

Goh and the four companies filed an application to strike out the suit on the basis that the legal action was a nullity and an abuse of the court process.

In their statement of claim dated July 21 last year, the 15 plaintiffs claimed that the companies had failed to make the agreed-upon monthly payments from Nov 2021 to June 2022, despite the plaintiffs having sent letters of demand through their solicitors.

The plaintiffs, aged between 58 and 74, claimed that Goh, as the co-founder and majority shareholder of MYAirline, and the other four defendants had breached fiduciary duties and should be made personally liable over losses suffered by the investors.

They contended that Goh, in issuing various notices and directives and holding conference calls with them, had made representations over ongoing issues faced by ISOM and the impact it would or would not have on the investors’ monthly returns.

They further claimed that ISOM, TCH and the other firms were raided by Bank Negara Malaysia (BNM) on Nov 11, 2021, and that a freeze order was allegedly issued against the companies.

Thus, the plaintiffs are seeking repayment of the RM8 million subscription price as well as repayment of the owed monthly redemption arrears and 5% annual interest on any awarded judgment sum.

In September, BNM said it had fined ISOM and its affiliates a combined total of RM50 million for violating the Financial Services Act 2013 (FSA) and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Amla).

BNM said its investigation revealed that between June 2018 and September 2021, the companies had accepted deposits from the public without a licence and engaged in transactions that involved “illegal deposit-taking activities”.

Last month, the police said it received 67 reports from investors who had stakes in ISOM. Bukit Aman commercial crime investigation department director Ramli Yoosuf said the reports involved a total loss of RM81.69 million. - FMT