KUALA LUMPUR" Newly listed Radium Development Bhd said it will ensure a fair and satisfactory resolution to the matter regarding a lawsuit filed by 241 individual purchasers of Residensi Platinum OUG against its subsidiary,Vistarena Development Sdn Bhd.
"Radium understands the importance of addressing all aspects raised in the lawsuit, including the establishment of access paths and the rectification of safety-related defects," it said.
The company said that at this stage, it is premature to determine the financial and operational impact of the lawsuit on Radium, as it depends on the outcome of the lawsuit.
Nevertheless, it is confident in its ability to handle such challenges while maintaining its commitment to delivering quality developments and ensuring customer satisfaction, it said.
Residensi Platinum OUG comprises a combined development of condominiums, affordable housing, and civil servant housing.
The lawsuit was filed after a meeting between the buyers' representatives and the developer on October 18, 2022, where no amicable settlement to the residents' complaints over the entry and defects was reached.
The lawsuit was brought against the defendant (Vistarena) on June 1, 2023, by the plaintiffs, who are the owners of units in Block B. They argued that they were misled by the defendant's claims about the purchase of the property, specifically, the separate entrances between Blocks A and B, which allowed for a sizable price difference.
Radium said in a filing made yesterday with Bursa Malaysia that the plaintiffs also alleged severe defects in the shared facilities.
The plaintiffs claimed that despite some correctional work having been done, the developer did not finish or correct the access card facilities or set up access control in a shared common space. Despite notifying multiple times about safety-related defects, no action has been taken, and the lack of access separation and clear signage between Block A and Block B is impacting Block B residents' financial prospects.
The residents are worried that a future management corporation may reallocate rights to use shared facilities, which would be disadvantageous to the residents of Block B. Hence, they have alleged the value of Block B has declined, and the developer has not taken responsibility, Radium said in the filing.
"Radium is currently in consultation with its solicitors, and the company will provide timely updates on any material developments related to the lawsuit. Radium remains committed to transparency and will keep all stakeholders informed of progress made in resolving this matter.
"We acknowledge the concerns raised by the plaintiffs and are committed to ensuring a fair and satisfactory resolution to this matter. The company emphasises that it has always strived to maintain transparency and uphold the highest standards of integrity in all its dealings," it said in a statement today.
Radium said that it is actively reviewing the Writ of Summons and Statement of Claim, and will cooperate fully with its legal advisors to respond appropriately to each claim and seek a fair and just resolution.