The Huge Group has reached an out-of-court settlement with a former director who had claimed R4.5 million from the company.
Julian Morelis, who had been a director of the company between March 2008 and November 2008, instituted a claim against Huge regarding a restraint of trade contract.
Morelis was claiming against the agreement, which he said he signed when he sold 95% of Centracell to Huge, in 2008. However, Huge says he never signed the restraint and, as a result, it could not pay him the R4.5 million.
The legal dispute dates back to July last year, when Morelis issued a summons against Huge, claiming R4.5 million and interest dating back to December 2007. Huge disputed the claim and was defending the action, and also intended to pursue a counterclaim against Morelis.
Yesterday, the listed company said the legal dispute between the company and Morelis had been settled and all court actions withdrawn.
CEO James Herbst says the company cannot disclose how much was paid out by either party, as Huge is in a closed period. However, he does not expect the settlement to affect earnings when the company reports its next results. Huge's year-end is in February.
“Huge is pleased with the outcome,” says Herbst. He says the court date to hear the matter, set down for 13 October, has been cancelled, and there are no more claims from either party.
Share