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Deepti Sri · · 6 min readLegal troubles cast doubts on Nasdaq-listed Society Pass’ future
Society Pass (SoPa), a tech company based in Vietnam, is currently entangled in several lawsuits that could significantly impact its operations and financial stability.
Most recently, SoPa was dealt a blow when the US Supreme Court of the State of New York awarded US$6.6 million worth of pre-IPO shares to the company’s co-founder and former chief marketing officer Thomas O’Connor. The legal body ruled in a partial summary judgment, as per court documents reviewed by Tech in Asia.
The judgment only represents one aspect of O’Connor’s overall claims against SoPa, which stem from an alleged breach of contract by the company regarding a Common Stock Purchase Warrant that would have granted O’Connor a total of 1,721 shares.
Society Pass co-founder and CEO Dennis Nguyen at the company’s listing on Nasdaq / Photo credit: Society Pass
SoPa’s legal troubles come on the heels of an acquisition spree. Just this year, the firm bought at least five companies, expanding its services in the travel, retail, digital advertising, and ecommerce sectors.
Some of its acquisitions include Indonesia’s Newave Strategic, Vietnamese B2B firm VLeisure, Singapore-based telco Gorilla Networks, and Thai digital advertising platform Thoughtful Media Group.
See also: Gorilla Mobile CEO’s past, blockchain issues throw monkey wrench into its plans
However, with the looming lawsuits, SoPa’s strategy of aggregating assets is proving to be complex and could strain its remaining cash reserves.
In November 2021, the company raised nearly US$28 million through its IPO on Nasdaq. But the firm’s struggles may also follow a growing trend: small firms underperforming after their IPO.
More damages may be on the way
O’Connor is now seeking a summary judgment on October 18, where his legal team plans to claim an additional US$8 million, along with penalty interests, based on signed agreements with SoPa.
He is also demanding US$79,600 for alleged unpaid salary.
In total, O’Connor seeks “monetary damages of not less than US$22.6 million” from SoPa, the court documents state.
Society Pass team at Nasdaq listing / Photo credit: Society Pass
More legal battles brew
IPO turmoil
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The company has just US$10.9 million in cash reserves, and concerns are growing on the impact its mounting legal battles will have on its operations.
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