- Roadzen Inc. (RDZN, Financial) is seeking approximately $19.5 million in a lawsuit against Meteora Capital Partners for alleged contract breach.
- The dispute involves a Forward Purchase Agreement where Meteora allegedly sold over 1.8 million shares improperly.
- Meteora acknowledges owing $914,726.53, but Roadzen claims the actual damages are much higher.
Roadzen Inc. (RDZN), a leader in AI-driven mobility and insurance technology, has filed a lawsuit against Meteora Capital Partners in Florida. The company is seeking approximately $19.5 million plus additional damages for an alleged breach of a Forward Purchase Agreement (FPA) signed in August 2023. Under the agreement, Meteora acquired 5 million shares of Roadzen at effectively no cost, with the obligation to remit sales proceeds back to Roadzen.
According to the complaint filed in Palm Beach County Circuit Court (Case Number 50-2025-CA-003675-XXXA-MB), Roadzen accuses Meteora of selling over 1.8 million shares without fulfilling payment obligations or providing necessary notifications. Meteora, on the other hand, claims it owes $914,726.53 under the FPA, an amount Roadzen has rejected, citing evidence of significantly higher damages.
Roadzen alleges that Meteora made misleading statements about their ownership to circumvent payment responsibilities, further complicating the contractual breach. The case highlights potential financial uncertainty for Roadzen, as the claimed amount represents about 20% of the company’s market capitalization, which could impact the company's capital allocation plans and shareholder value.
CEO Rohan Malhotra described Meteora’s actions as a severe breach of trust, stating, “This isn’t just about a contractual dispute — it’s about holding parties accountable for their actions.” The lawsuit, if successful, could significantly bolster Roadzen’s financial position, although the litigation process is expected to consume considerable time and resources.
The case underscores the legal and financial complexities surrounding the enforcement of Forward Purchase Agreements, particularly in the context of public market activities.
