FSD Pharma wins again in case against former CEO

2 weeks ago 29

The judge quoted a South Park movie song Blame Canada in his opinion.

FSD Pharma Inc. (NASDAQ: HUGE)(CSE: HUGE) won its battle with the company’s former CEO Dr. Raza Bokhari. After years of litigation and an eight-day evidentiary hearing, FSD Pharma announced that the Arbitrator ruled against Bokhari and issued three awards against Bokhari in favor of FSD, including an award for damages and awards for FSD’s fees and costs incurred in the arbitration.

The company announced that on May 29, 2024, the United States District Court for the Eastern District of Pennsylvania confirmed FSD Pharma, Inc.’s petition to confirm arbitration awards entered against Dr. Raza Bokhari by a Canadian arbitrator in 2022. FSD said it will now move for entry of final judgment against Bokhari.

Bokhari has been challenging his termination for years following a proxy battle he staged at the company but lost. The proxy battle stemmed from disagreements over acquisitions between Bokhari and the company’s founders.

He wanted FSD Pharma to pay him $30 million for his alleged wrongful dismissal. Instead, FSD will be collecting payments from Bokhari as follows:

$147,301.04, plus interest at a rate of 4% per annum from November 9, 2022 until the date the Judgment is satisfied. C$31,912.55, plus interest at a rate of 4% per annum from November 9, 2022 until the date the Judgment is satisfied. C$15,000.00, plus interest at a rate of 4% per annum from November 9, 2022 until the date the Judgment is satisfied. C$2,814,229.15, plus interest at a rate of 6% per annum from May 7, 2023 until the date the Judgment is satisfied.

Certainly, some judges have a sense of humor. In the Pennsylvania court opinion, Judge Wolson started his opinion quoting South Park writing, “Raza Bokhari may be thinking, “It seems that everything’s gone wrong since Canada came along!” The line came from the South Park movie song Blame Canada, on South Park: Bigger, Longer, and Uncut (Atlantic Records 1999).

He went on to write, “While it’s easy for him to claim unfairness considering the bind he’s created, Dr. Bokhari has himself to blame for this predicament—not FSD, not the arbitrator, and certainly not Canada. He has not offered reasonable grounds for why I should refuse to enforce the award against him.”

Judge Wolson concluded saying, “Dr. Bokhari might be upset that what started as a complaint against his former company ended as a seven-figure judgment against him. I don’t blame him. But him being upset does not give me leave to interfere with a foreign tribunal’s adjudication on the merits or denying FSD’s right to enforcement in this district.”

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