Founders of publicly-listed Microsoft partner and intelligent workplace software provider LiveTiles, Karl Redenbach and Peter Nguyen-Brown, have settled a legal dispute after reaching an agreement to pay $8.445 million in a NSW Supreme Court case that was brought to light in 2018.
The case involved an asset dispute between Karl and Nguyen-Brown who were former co-owners of Microsoft Sharepoint reseller, nSynergy and two other former co-owners of nSynergy Keith Redenbach and Campbell Ray.
Keith and Ray accused Karl and Nguyen-Brown of breaching their director’s duties by establishing separate businesses and diverting assets away to separate corporate entities, including LiveTiles and another firm nSynergy International, which were under a parent company, Legal Practice Management Group (LPMG).
LPMG was founded by both Redenbachs with the aid of Ray in 2002, with nSynergy established in 2003. Karl and Nguyen-Brown incorporated nSynergy International (2003) and nSynergy OSC Holdings (2013), the latter which Keith said was incorporated without his knowledge.
In a statement of claim in 2018, Keith and Ray were seeking “equitable compensation or account of profits for the breaches of equitable duties.”
nSynergy was later sold to publicly listed distributor rhipe in 2014 for $25.35 million.
In a statement to the ASX, Karl Redenbach said he was “pleased to resolve this matter, and to focus all of its attention and energy on the continued growth of LiveTiles.
“We have just completed a very strong successful quarter with a strong cash balance and look forward to sharing the results with shareholders,” he said.
LiveTiles told shareholders that the settlement was made without any admission of liability by LiveTiles.