SINGAPORE - Beverage giant Pokka Singapore has settled its $10 million lawsuit against former chief executive Alain Ong Eng Sing, the two parties announced on Thursday (April 9).
In a High Court suit filed in July last year, Pokka accused Mr Ong of being involved in a conspiracy that caused the drinks maker to suffer at least $10 million in losses. Mr Ong then lashed back with various allegations against his former employer in a counterclaim.
The joint media statement on Thursday said: "Parties are pleased to announce that they managed to resolve their differences amicably and wish each other well in their future endeavours. In the spirit of settlement, Alain would further like to withdraw all allegations made in his counterclaim in the suit."
It is understood that the two-line statement is part of the settlement agreement.
In its suit, Pokka accused Mr Ong of working with others to divert business to another beverage company, Asian Story Corporation (ASC), and of inflating the value of ASC in anticipation of its acquisition by public-listed coffee shop operator Kimly.
Pokka alleged that Mr Ong, whose wife is actress Vivian Lai, had breached his duties as a director and employee.
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Mr Ong was deputy group chief executive of Pokka Corporation (Singapore) and CEO of Pokka International before he was removed in September 2018 after internal investigations.
In February 2017, Mr Ong became a non-executive and non-independent director of Kimly, which was listed on Singapore's stock exchange the next month.
In July 2018, Kimly announced its acquisition of ASC for $16 million but the deal was later aborted.
According to Pokka's court filing, ASC was set up in December 2009 by Mr Amos Wang, a former sales and marketing director in Pokka International. ASC has no manufacturing or distribution capabilities, said Pokka.
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It said that on Mr Ong's advice, Pokka entered into a manufacturing agreement with ASC to develop recipes and make Asian drinks on behalf of ASC.
Pokka alleged that Mr Ong's true intention was to rely on the Pokka brand to promote ASC drinks. It claimed it suffered losses of more than $7 million from the diverted Asian drinks business and preferential treatment of ASC.
Pokka claimed the diversion of business also resulted in a $3.7 million loss, after the Monarch Beverage Company, which owns the Kickapoo brand, terminated an agreement with Pokka to make, sell and distribute drinks.
Mr Ong, in his defence, argued that Pokka had always marketed itself as a premium Japanese beverage brand and attempts to venture in Asian drinks met with little success.
He said the decision to sign on ASC - which was approved by the board and management - was a strategy to attack Yeo Hiap Seng.
Mr Ong also claimed he was ousted from Pokka for having raised concerns about "questionable practices" in the company, including the alleged sales of products in North Korea.
This article was first published in The Straits Times. Permission required for reproduction.