Cloud-based education software provider LiveTiles has agreed to pay almost AU$8.5 million to settle a legal dispute involving two of its co-founders' former associates.
LiveTiles' co-founders, Karl Redenbach and Peter Nguyen-Brown, will also transfer 16.3 million shares to their former associates as part of the settlement.
The settlement brings an end to a three-year legal fight that arose when the former associates, Karl's brother Keith Redenbach and Campbell Ray, sued LiveTiles' co-founders for allegedly diverting assets from the now-defunct nSynergy into various corporate entities, including LiveTiles, without their knowledge.
The four individuals were joint shareholders of nSynergy -- Karl Redenbach and Nguyen-Brown were also the company's directors -- before the company was sold to Rhipe for AU$25.4 million in 2014.
LiveTiles was then spun out of nSynergy's assets shortly after the sale.
"The proposed statement of claim then pleads the incorporation of several further companies by Mr Redenbach and Mr Nguyen-Brown from June 2007 onwards, which it is alleged was unknown to Mr Keith Redenbach and Mr Ray, and the growth of nSynergy's revenue and business over that period," the applicants' wrote in 2017.
In the lawsuit, Keith Redenbach and Ray alleged that the creation of LiveTiles was unfairly prejudicial and discriminatory to the both of them and nSynergy.
The applicants also accused Karl Redenbach and Nguyen-Brown of breaching their director's duties as the act of diverting nSynergy's assets to LiveTiles and other corporate entities created competition for the company.
On Wednesday, Karl Redenach released a statement about the settlement: "We are pleased to resolve this matter, and to focus all of our energy on the continued growth of LiveTiles."
LiveTiles creates digital workplace software that allows companies to create custom digital workspaces -- akin to a bespoke intranet -- with API integrations to enable programs to work together.
LiveTiles found itself listed on the Australian Securities Exchange in 2015 following a reverse takeover of Perth-based Modun Resources, a company which was previously involved in the acquisition, development, and mining of thermal and coking coal deposits in Mongolia.
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Based in Times Square, education software provider LiveTiles has listed on the ASX following a reverse takeover of Mongolian coal developers, Modun.
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