The International Court of Arbitration awarded UpHealth Holdings more than $110 Million in Damages in Breach of Contract Lawsuit Involving the 2020 Purchase by UpHealth of Glocal Healthcare Systems
UpHealth, Inc. announced that its subsidiary, UpHealth Holdings, Inc., was awarded over $110 million in damages by the International Court of Arbitration of the International Chamber of Commerce in a breach of contract lawsuit against Glocal Healthcare Systems and several of its officers and shareholders. The dispute stemmed from UpHealth’s acquisition of Glocal pursuant to a Share Purchase Agreement in 2020, in which the Respondents refused to relinquish control of Glocal to UpHealth, despite the payment in full of the acquisition consideration.
The arbitral tribunal found the Respondents liable for breach of contract and directed them to pay UpHealth Holdings up to $110.2 million in damages, as well as most of the legal costs and other expenses that Holdings incurred in the arbitration. The $110.2 million damages are apportioned based on the shareholders’ percentage of each of the Indian directors and shareholders of Glocal: 34.38% to be paid by Dr. Syed Sabahat Azim, 34.38% by Richa Sana Azim, 4.69% by Mr. Gautam Chowdhury, 22.54% by Mr. Meleveetil Damodaran, and 4.02% by Kimberlite Social India Private Limited.
UpHealth expressed its determination to hold the Respondents accountable for their breach of contract, which caused harm to UpHealth and its stockholders. The company is now focused on improving UpHealth’s remaining business, collecting the award, and maximizing stockholder value.
Dr. Avi Katz, Chair of UpHealth’s Board of Directors, emphasized the Board’s commitment to acting within their fiduciary duties to protect, unlock, and maximize stockholders’ value. Dr. Katz called upon two fellow Board members, Dr. Chirinjeev Kathuria and Dr. Mariya Pylypiv, who had joined an investment and voting group with the Glocal shareholders in 2022, to resign immediately from the Board to ensure the UpHealth Board is comprised of directors who will pursue the collection of this award impartially and without conflict or delay.
UpHealth is a global digital health company that delivers a full continuum of behavioral health solutions through the utilization of evidence-based treatments and services. The company’s levels of care include detox, residential, partial hospitalization programs, intensive outpatient programs, outpatient, and telehealth. UpHealth’s clients include health plans, healthcare providers, and community-based organizations.
This press release contains forward-looking statements within the meaning of U.S. federal securities laws. The forward-looking statements contained in this press release involve a number of risks, uncertainties, or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. UpHealth undertakes no obligation to update or revise any forward-looking statements, whether because of new information, future events, or otherwise, except as may be required under applicable securities laws.
