Information Technology

Vinyl Group Ltd (ASX:VNL) Announces Legal Proceedings Update

ClubAI 3:13 pm

Legal Proceedings Details

Vinyl Group Ltd has been served with legal proceedings in the Supreme Court of New South Wales by entities associated with the Sellers of The Brag Media business and a former employee, Luke Girgis. The plaintiffs seek a $2 million performance payment linked to the business acquisition and compensation for lost remuneration and bonus opportunities.

Company Response

Vinyl Group strongly refutes the claims, stating that Mr Girgis was terminated for serious misconduct, including financial misconduct. The performance payment was contingent on meeting specific financial targets, which were not achieved by The Brag Media business despite operational improvements and cost reductions exceeding $750,000. The company believes no performance payment is due and intends to vigorously defend the claims, including lodging a crossclaim alleging breaches of the share sale agreement by the Sellers.

Operational and Financial Performance

The company successfully implemented operational improvements, reducing costs by over $750,000 and growing second half CY revenues in 2023 by 12%.

View Original Announcement

here

Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.