Meta Health has reached a settlement arrangement with former senior executives from two subsidiary companies, securing a payment of $136,831.82 to be received in nine installments beginning in September.

The settlement involves Dr Vasanthan Metupalle and his wife, Jagannathan Padmaja Sakthi, who previously served as chief medical officer and director at 5Digital and GainHealth respectively. The payment arrangement follows their failure to settle an outstanding obligation of $336,831.82 that was due in January, prompting Meta Health to issue a formal demand for payment.

Legal action was initiated in May 2023 by Gainhealth and 5Digital against Dr Vasanthan, Sakthi, along with 1Life Healthcare and Aventres Enterprise Limited - two entities operating independently of Meta Health.

The defendants faced allegations of deceptive practices after "suspected irregularities" were uncovered in certain Gainhealth sales transactions in March 2023. The litigation aimed to recover corporate losses and inappropriate payments connected to these transactions.

On September 15, 2023, Meta Health disclosed that Gainhealth and 5Digital had been granted approximately S$1.4 million in damages and legal costs. The majority of this award, roughly S$1.3 million, carries interest at 5.33 percent annually from the lawsuit filing date.

At that time, Dr Vasanthan and Sakthi committed to paying the complete damage amount sought by Gainhealth and 5Digital, plus a contribution toward legal expenses.

Meta Health pursued bankruptcy proceedings against Dr Vasanthan and Sakthi in March, followed by a payment demand notice issued two weeks subsequently.

The negotiated settlement amount of $136,831.82 was reached through bilateral discussions, factoring in a contested pre-existing $200,000 debt owed by 5Digital to Dr Vasanthan and Sakthi.

Meta Health shares remained unchanged at 0.7 cents at market close on September 15.