Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 148

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 148
---
 Civil and Sessions Judge at Mayo Hall, Bengaluru, issued an interim injunction to restrain
each of Zoomcar and IOAC from “alienating or dealing” the 100,000 shares (without giving effect to the reverse splits and
the conversion ratio for the business combination) of Zoomcar claimed by the former employee while the suit is pending. Zoomcar believes
that such claims are baseless and is attempting to have the interim order vacated. In addition, Zoomcar India filed an application in
the former employee’s suit, seeking that IOAC be deleted from the array of parties in the suit, inter alia since (i) IOAC is neither
a necessary nor a proper party to the suit; (ii) no reliefs have been sought by the former employee from IOAC; and (iii) there is no cause
of action against IOAC. However, there can be no assurance that Zoomcar India and Zoomcar will be successful in their efforts to have
the matter vacated or IOAC deleted from the parties, and such efforts may be time-consuming, costly and may have reputational and other
negative effects on Zoomcar.

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.

On September 26, 2024, we
received a copy of a complaint filed with the United States District Court for the District of Delaware wherein our founder and former
CEO Mr. Moran has challenged the Company’s termination of his employment for cause, effective as of June 18, 2024. Mr. Moran has
contested the facts leading up to the grounds on which his termination was based and has also claimed that this alleged wrongful termination
has deprived him of his vested right to 8% of the Company’s outstanding equity that he claims was owed to him under his Employment
Agreement. He has also claimed that in connection with his termination he is entitled to the payment of certain amounts for unused paid
leave during his employment with Zoomcar, along with certain compensation he claims to be owed under the terms of his Employment Agreement,
“Owed Severance” equal to approximately $72,000. In total, Mr. Moran seeks damages of at least $238,000 plus damages associated
with the 8% of shares. He also seeks damages under the New York Labor Law, under which he seeks liquidated