PickMe ‘s Proposed IPO Under Scrutiny: Court Case on Promised Shareholding in Digital Mobility Solutions Lanka (Pvt) Ltd

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A legal dispute has emerged involving Digital Mobility Solutions Lanka Limited, the company behind the popular ride-hailing platform PickMe, as the company’s proposed Initial Public Offering (IPO) comes under the lens of the Commercial High Court. The action was filed by Fathhi Mohamed who alleged that he was a co-founding member of the company, naming Digital Mobility Solutions Lanka (Pvt) Ltd and Hassen Jiffry Zulfer as defendants.




In the plaint, Fathhi alleges that he played a significant role in establishing the company and was promised a 2% shareholding by the defendants, a promise that has allegedly not been fulfilled. Fathhi contends that despite repeated requests, the defendants have failed or neglected to transfer the promised shares to him.

Given the proposed IPO, Fathhi has sought to prevent any further steps towards the public offering until the issue of his alleged shareholding is resolved. However, during yesterday’s 3 September court proceedings, President’s Council Eraj de Silva appearing for the plaintiff stated that the plaintiff had opted to not seek an ex parte enjoining order and instead chose to give notice and seek an interim injunction, with a view to not disrupting the IPO unnecessarily. He further raised concerns that the defendant was attempting to expedite the IPO process in bad faith.

The first defendant represented by President’s Council Faiser Mustafa, requested additional time to file objections and the court granted time till the 18th of September.

The court will continue to deliberate on the matter, with further proceedings expected to clarify the implications for all parties involved.



 

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