Ario Khoshbin Launches Legal Action After Prollenium Exit
Ario Khoshbin Takes Legal Action Against Prollenium Medical Technologies
Ario Khoshbin, known for founding Prollenium Medical Technologies Inc., has taken a significant step by filing legal action in the Ontario Superior Court of Justice. This lawsuit raises serious allegations against ArchiMed SAS, Panacea Holdings Inc., and Prollenium Medical Technologies Inc. The core of the claim revolves around shareholder oppression and wrongful termination, which he asserts occurred following his unexpected exit as CEO.
The Story of Prollenium and Its Founder
Khoshbin started Prollenium in 2002, beginning his journey while still a university student. Over the years, he transformed the company into a global leader in the aesthetics industry, including proprietary research and development and a manufacturing capacity that spans more than 80 countries. Notably, Prollenium stands out as the sole North American manufacturer of hyaluronic acid dermal fillers.
The Transition of Leadership
In 2021, Khoshbin sold a majority interest to ArchiMed, a private equity firm based in Europe. Even after the transaction, he retained his position as CEO and maintained a significant stake in the company while also sitting on the board of directors. Despite these assurances, Khoshbin alleges that the business dynamics changed sharply post-acquisition.
Allegations of Mismanagement
The lawsuit details serious allegations that following ArchiMed's takeover, the focus shifted towards immediate financial gain at the expense of long-term strategy, undermining the interests of minority shareholders in the process. Khoshbin claims he was progressively excluded from critical governance discussions and decisions, ultimately culminating in his dismissal without cause.
Details of the Allegations
Khoshbin’s legal claim asserts that he was forcibly removed from his position through a board vote, contrary to initial public statements from the company that suggested he had left voluntarily. According to Khoshbin, this decision was made without any formal performance review process and despite his willingness to transition smoothly out of his role.
New Leadership Dynamics
The claim further mentions that ArchiMed had predetermined Khoshbin's successor, appointing Walter Geiger as interim CEO even before Khoshbin's removal. It appears Geiger was not eligible for employment within Canada at the time of his appointment, raising questions about governance and operational integrity within the organization.
Khoshbin's Position Post-Removal
Post-termination, Khoshbin stepped down from his role on the board of Panacea Holdings but retains a significant indirect ownership stake, along with ownership of key manufacturing assets located in Ontario. Khoshbin expressed that his journey with Prollenium has been instrumental in shaping his career, despite the abrupt nature of his departure.
Seeking Justice and Compensation
The lawsuit seeks multiple remedies, including a formal buyout of Khoshbin's shares at a fair market value, compensation for wrongful dismissal, and damages relating to the breach of contract and reputational injury. The case, however, is still in its early stages and awaits examination in court.
Frequently Asked Questions
What are the main allegations in Khoshbin's lawsuit?
Khoshbin alleges shareholder oppression, wrongful termination, and breach of contract against Prollenium and its new leadership.
When did Ario Khoshbin found Prollenium?
Khoshbin founded Prollenium Medical Technologies Inc. in 2002 while still a university student.
Who took over as CEO after Khoshbin's removal?
Walter Geiger was appointed as the interim CEO, despite not having a valid Canadian work permit at the time.
What does Khoshbin seek from the legal action?
The claim includes requests for a buyout of his shares, damages for wrongful dismissal, and compensations related to his reputation.
What impact did the acquisition by ArchiMed have on Prollenium?
Khoshbin claims that the acquisition led to mismanagement, a focus on short-term profits, and exclusion of minority shareholders from decision-making.
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