Plaintiffs Egraduate.net Sdn Bhd and Gangsa Abadi Sdn Bhd say a former director and shareholder, named as the third defendant in the suit, had wrongfully transferred the programmes to Smart Trends International Sdn Bhd sometime in 2017 without reasonable justification.

As a result, the two plaintiffs say they suffered substantial loss of profits.

“The third defendant had a fiduciary obligation towards the plaintiffs to act in their best interest. His action violated those fiduciary obligations,” the plaintiffs said in their statement of claim.

The plaintiffs said the transfer came to the notice of a client sometime in 2017.

They further claim that the ex-director had in another lawsuit filed in 2020 admitted transferring the programmes to Smart Trends International during his tenure.

They also claim that he had admitted in the other lawsuit that HRD Corp had paid Smart Trends over RM26.4 million.

Egraduate.Net and Gangsa Abadi are seeking a court declaration holding HRD Corp, the ex-director and Smart Trends International liable for the transfer of the programmes.

They also want the trio to pay over all profits earned from the programmes.