Roadzen (RDZN) filed a lawsuit against Meteora Capital Partners LP and affiliated entities for alleged willful breach of contract and is pursuing a contractual claim of about $19.5 million plus additional damages, Roadzen said Monday.

The suit, filed in the Circuit Court of Palm Beach County, Fla., is based upon a forward purchase agreement, which was signed in August 2023, under which, Meteora acquired 5 million shares in Roadzen at effectively a zero-cost basis. In exchange, Meteora agreed to remit proceeds from the sale of those shares to Roadzen under specific, clearly defined contractual mechanisms.

Roadzen alleges that, despite negotiated safeguards, Meteora sold more than 1.8 million shares without honoring its payment obligations or providing the required notices under the agreement. Roadzen claims that Meteora willfully breached the contract and that its conduct damaged Roadzen and its public market value.

Roadzen claims in the complaint that Meteora continued to sell shares while making misleading statements about their ownership to avoid paying what was contractually owed to Roadzen.

Roadzen said Meteora's claim that it owes $914,726.53 pursuant to the terms of the forward purchase agreement, an amount which Roadzen rejected, "citing breach of contract and evidence that the scope of Meteora's sales and resulting damage was significantly higher."

Meteora Capital didn't immediately respond to a request for comment from MT Newswires.

Price: 1.02, Change: -0.05, Percent Change: -4.67