Georgiou’s last legal stand?
TYCOON SEEKS TO OVERTURN SCATHING JUDGMENTS CITING SABOTAGE OF OTHER INVESTORS Magnate continues to selectively settle the claims of individuals – especially those who publicly criticise him and Orthotouch. One investor said they offered to settle her cl
Property magnate Nic Georgiou is trying to overturn two high court judgments that found he acted unethically while trying to scuttle a class action by Highveld Syndication Action Group (HSAG) members. The judgments were scathing of his attempts to secretly settle the claims of the six applicants selected to represent 7 000 HSAG members in the class action. Conditions for the secretive settlements required the six applicants to withdraw their application for the class action and appoint new attorneys, scuttling the victims’ efforts. This was done without notifying the HSAG legal team.
In his application for leave to appeal, Georgiou claims Theron & Partners had no mandate to represent HSAG investors and did not comply with discovery notices to expose the identity and financial contributions of HSAG members.
In two judgments, Judge Mohamed Ismail of the Johannesburg High Court said Georgiou’s conduct was “an act to sabotage the claim of the other investors” while Judge John Murphy of the Pretoria High Court said he abused court process to leave members of the action “high and dry”.
Jacques Theron, for HSAG, said the appeal was a further delaying tactic. Georgiou and Orthotouch did “everything in their power to delay matters to appeal, in one year filing six interlocutory applications of which two were already dismissed by the Supreme Court of Appeal”.
Georgiou had also failed to settle the claims of around 800 of the 7 000 HSAG investors who accepted his 50% settlement offer. He has not provided reasons for that and did not respond to Business’s request to explain his decision.
HSAG steering committee member Johan Stander said Georgiou also reneged on a commitment to table an improved offer by the end of April. Stander confirmed HSAG had suspended negotiations.
Business has confirmed that Georgiou continues to selectively settle the claims of individuals – especially those who publicly criticise him and Orthotouch. For example: Elna Visagie, a former HSAG steering committee member who actively promoted the class action, now supports Georgiou after Orthotouch offered her employment. Georgiou and Visagie visited an investor in her home in Cape Town to settle her claim. This investor, who wanted to remain anonymous, said they offered to settle her claim if she discontinued her public criticisms.
From discussions with investors, the HSAG and Visagie it seems investors have the following options:
Continue to receive income of 2% per annum and receive full capital repayment in 2024;
Accept 50% of their original capital investment in 10 instalments;
Investors who elected the 40% option at the inception of the scheme of arrangement have been repaid their 40% capital. Investors who elected for this option may now elect to also receive the 50% option.
Georgiou did not respond to requests for comment.