Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 463

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 1
Chunk 463
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Item 1. Legal Proceedings

Except as described below,
we are not currently subject to any material claims, lawsuits, arbitration proceedings, administrative actions, government investigations
and other legal and regulatory disputes and proceedings (collectively, “Legal Proceedings”) and we are not subject to any
pending Legal Proceedings in any of the jurisdictions where we operate other than in India. We have received communications relating to
certain legal proceedings, as described in below under the following Risk Factor titles:

A)“Risk Factors — A former employee of Zoomcar India has instituted a wrongful
termination suit and claims that certain Zoomcar options have vested”;

B)“Risk-Factor - The founder and former CEO of the Company has initiated a civil complaint against
the Company contesting the reasons for his termination and has raised certain other claims with regards to his ownership of the Company
and compensation for termination of his employment.” 

C)“Risk Factors- ACM has filed a notice of motion for summary judgement in lieu of complaint against
Zoomcar in New York courts for payment of amounts due under the Note pursuant to breach of the terms of a note

We may become subject to other Legal
Proceedings over time or from time to time, in the ordinary course of our business and as our business continues to grow and expand over
time. Becoming involved with Legal Proceedings, regardless of the outcome, may result in substantial cost and diversion of our resources,
including our management’s time and attention.

As a result of our business
operations in India, we are regularly subject to legal proceedings, many of which are de minimis in nature and amount and the majority
of which relate to local tax matters. Many of these tax and vehicle accident-related Legal Proceedings are pending before various forums
in India and involve localized practices and interpretations of regulatory matters that make the ultimate outcomes or resolution of these
Legal Proceedings inherently uncertain and difficult to predict. Management’s views and estimates related to these matters may change
in the future, as new events and circumstances arise and the matters continue to develop.

On August 4, 2023, a former
consultant (Mr. Randall Yanker) to Zoomcar filed a complaint against Zoomcar in the United States District Court for the Southern District
of New York. The complaint contains breach and anticipatory breach of contract claims arising from a letter agreement, effective as of
May 2020, between Zoomcar and the former consultant, which engagement letter was terminated by Zoomcar in January 2022. The