Civil Claims of Alleged Fraud and Breach of Fiduciary Duty for $440 Million in Damages

ROUND ROCK, Texas - Sept. 13, 2023 - PRLog -- Civil Claims of Alleged Fraud,
Fraudulent Inducement, Fraud by Nondisclosure, Negligent Misrepresentation, Tortious Interference with Contract, Civil Conspiracy to Tortiously Interfere with Contracts, Breach of Fiduciary Duty, and Knowing Participation in Breach of Fiduciary Duty Filed Against
Dr. Sud Agarwal, Todd C. Davis,
Benuvia Holdings, LLC, Murchinson Ltd., and Marilynn D. Martin

FOR IMMEDIATE RELEASE

Round Rock, TX, September 13, 2023

Next Frontier Holdings, Inc. and Benuvia, Inc., a subsidiary of Next Frontier Holdings, Inc., today announced a civil complaint against Dr. Sud Agarwal, Todd C. Davis, Benuvia Holdings, LLC, Murchinson Ltd. and Marilynn D. Martin, for engaging in a multi-million-dollar conspiracy to commit fraud, fraudulent inducement, fraud by nondisclosure, negligent misrepresentation, tortious interference with contract, civil conspiracy to tortiously interfere with contracts, breach of fiduciary duty, and knowing participation in breach of fiduciary duty. Damages claimed total $440 million.

According to the complaint, from January 2022 through at least May 2022, the alleged conspirators colluded with corporate insiders to breach their fiduciary duties and attempt to bankrupt Benuvia, Inc., which was purchased by Next Frontier Holdings, Inc. for $45 million by the claimants 60 days prior to the beginning of such collusion. The alleged conspirators attempted to bankrupt Benuvia in order to undermine a merger of Benuvia into a Nasdaq-listed company and to repurchase Benuvia for their own benefit at a significantly discounted price.

As alleged, the parties colluded to misappropriate corporate cash and commit other wrongful acts in order to incur a default by Benuvia on a loan payment. In addition, the conspirators colluded with Benuvia's lender to extort additional fees and charges from the claimants under the false pretenses of settlement, with one defendant deleting emails and other evidence of their wrongdoing, a portion of which were recovered by the claimants.

The complaint, which was filed by the claimants in state court in Williamson County, Texas (Cause No. 23-1914-C368), alleges violations of state statutes related to fraud, fraudulent inducement, fraud by nondisclosure, negligent misrepresentation, tortious interference with contract, civil conspiracy to tortiously interfere with contracts, breach of fiduciary duty, and knowing participation in breach of fiduciary duty. The claimants will be seeking permanent injunctions, disgorgement of allegedly ill-gotten gains, plus interest, and civil penalties. The claimants will also be cooperating with state and federal authorities in pursuing criminal charges against the conspirators.