Court Rules Former Employee Fraudulently Induced Agreements, Awards Company $7.4M Liability
Summary
Society Pass received a court ruling in a major employment lawsuit, significantly reducing its potential liability from over $17 million to approximately $7.4 million, though the company plans to appeal.
Key Events
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Court Decision on Lawsuit
Court ruled on February 5, 2026, in an employment action against former employee Thomas O'Connor and CVO Advisors Pte. Ltd.
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Fraudulent Inducement Found
The court found O'Connor fraudulently induced agreements, ordering the return of shares issued under those agreements and dismissing salary/severance claims.
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Significant Liability Reduction
Initial claims against the company totaled over $17 million; the court rejected CVO's $8 million claim and O'Connor's $9.9 million claim for undelivered shares.
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Awarded Liability
The company was ordered to pay approximately $7.4 million (plus interest) for equity that vested under the warrant agreement before August 2019.
Analysis
The court's decision significantly reduces the company's potential liability from a long-standing employment lawsuit, finding the former employee engaged in fraudulent inducement. While the company is still ordered to pay approximately $7.4 million plus interest, this is substantially less than the initial claims totaling over $17 million. The company plans to appeal the decision. This resolution, despite the remaining liability, removes a major legal overhang, though the awarded amount is substantial relative to the company's market capitalization and its ongoing capital raise efforts.
At the time of this filing, SOPA was trading at $1.59 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $11.9M. The 52-week trading range was $0.64 to $6.75. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.