Meda responds to class-action suit by Arc @ Cyberjaya unit owners

PETALING JAYA: Meda Inc Bhd on Friday told Bursa Malaysia it denies promising a fixed rental income of up to 25 years to 137 apartment owners who have initiated a class-action lawsuit against its wholly owned subsidiary, Maju Puncak Bumi Sdn Bhd (MPSB).
MPSB is the developer of Arc @ Cyberjaya, a serviced apartment project.
Meda said according to an option agreement between owners and MPSB to exercise their option for a guaranteed rate of return (GRR), there is a fixed term of three or four years (depending on the unit), and the option to renew the agreement for up to 20 years was on MPSB.
“In fact, we have terminated the GRR scheme pursuant to the option agreement for majority of the units,” it said.
The class-action suit is claiming breach of contract in relation to the option agreement.
The owners are claiming for RM3.97 million being the outstanding rentals up till May 2017; 8% interest on the outstanding rentals; agreed liquidated damages as stated in the agreement, general damages, and/or aggravated damages, as well as exemplary damages; 5% interest from the judgement till the full payment date; cost; vacant possession of the unit; and any relief deemed fit by the court.
“We have already captured all the outstanding rentals amounting to RM 3.97 million, therefore, there is no financial impact in our books. Any further updates in respect of any material development of this case will be made from time to time,” Meda said.