Vitura Health (ASX:VIT) said it discontinued funding the legal defense of its unit CDA Clinics Qld, and the unit's current director has taken steps to place it into liquidation, according to a Tuesday bourse filing with the ASX.
Neil Mclean and Brodie Hilet from Rodgers Reidy were appointed as the joint and several liquidators of CDA Clinics Qld.
CDA Clinics Qld faces legal proceedings initiated on behalf of the Therapeutic Goods Administration in the Federal Court related to alleged breaches of the Therapeutic Goods Act during the period from April 27, 2021, to July 30, 2021.
Vitura clarified that it was not involved in the historical alleged breaches and is not a party to the proceedings. It added that it did not make any admissions regarding the proceedings.
CDA Clinics Qld is a dormant company and does not operate Vitura's current CDA Clinics operation, it added. It was in the process of seeking to deregister CDA Clinics Qld, along with three other dormant units, when the proceedings were brought against it.
The legal proceedings against CDA Clinics Qld have automatically been stayed, the filing said. The administration can seek leave of the Court to continue the proceedings against CDA Clinics Qld.
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