Aspen faces lawsuit by IBM claiming RM7.7m

ASPEN (Group) Holdings' subsidiaries have received a writ of summons from units of IBM in Malaysia claiming RM7.7 million (S$2.6 million) for development services, according to a filing with the exchange on Thursday during the midday trading break.

Aspen, a property developer, is disputing the claims and plans to file a counterclaim.

Aspen's wholly owned subsidiaries AG Innovation and Aspen Vision All were served with the writ on Sept 19, 2018. IBM Malaysia and IBM Capital Malaysia filed the suit in the High Court of Malaya in Penang.

IBM Malaysia is claiming RM2.25 million against AG Innovation, and IBM Capital Malaysia is claiming RM5.42 million against both AG Innovation and Aspen Vision All. The claims stem from the development of a cloud technology infrastructure platform and the provision of services for the development of intelligent features and amenities to Aspen.

Aspen does not expect the suit to have any material impact to net asset value per share and earnings per share for the fiscal year ending Dec 31, 2018.