KUALA LUMPUR: Radium Development Bhd said it is still too early to assess the financial and operational effects of the lawsuit brought on June 1, 2023, against its 80 per cent subsidiary, Vistarena Development Sdn Bhd.
The outcome of the lawsuit would determine any effects on the company's finances and operations, it said in a statement.
Radium, which made its trading debut on the Main Market of Bursa Malaysia on May 31 said that it understood the plaintiffs' concerns and will work to bring the situation to a fair and satisfactory conclusion.
"We are confident that we will be able to resolve the matter in a fair and equitable manner. We remain committed to our ongoing and future developments, and we are certain that this dispute will not impact our ability to continue providing quality products and services to our customers," the company said in an email response to the New Straits Times.
Radium said the case management is scheduled for July 2023, and it is committed to working towards a positive resolution as quickly and efficiently as possible.
The company said it has initiated discussions with the buyers to understand their issues and find common ground for resolution.
It also said that it will continuously to improve its processes and practices to prevent similar disputes from arising in the future.
"We understand the importance of clear communication, adherence to timelines, and delivering on our commitments. With immediate effect, we are further enhancing our project management procedures, strengthening our customer engagement initiatives, and implementing robust quality control measures," it said.
Radium is 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.
A total of 241 individual purchasers of Block B of Residensi Platinum OUG are suing the defendant (Vistarena).
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.
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.
The plaintiffs also alleged severe defects in the shared facilities in the development.
They 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.
They also claimed that 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.
Radium said in a Bursa filing on June 13 that 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.