KUALA LUMPUR (Feb 13): Careplus Group Bhd (KL:CAREPLS) said its 51%-owned subsidiary, NexV Manufacturing Sdn Bhd, is facing a lawsuit in relation to a dispute over a share purchase transaction.

The legal action, filed by one Teo Yun Hock at the High Court, named NexV among 19 defendants, which include AutoHome Motor Sdn Bhd, Go Auto Sales Sdn Bhd, as well as  business figures Sheikh Mohamad Azli Sheikh Mohamad Nasimuddin Kamal and Sheikh Mohamad Azrul Sheikh Mohamad Nasimuddin Kamal.

According to Careplus' bourse filing on Thursday, Teo is claiming that Go Auto Sales had failed to pay a balance purchase price of RM4.1 million for shares in AutoHome Motor.

He further accused Sheikh Mohamad Azli and Sheikh Mohamad Azrul of fraudulent misrepresentation and conspiracy to defraud.

Careplus described the claim as "vexatious and baseless' and asserted its intention to defend the suit. It said the board will appoint solicitors to seek a strike-out of the action.

The company assured that the litigation would not materially impact its financial or operational position.

Shares of Careplus fell 0.5 sen or 2% to close at 24.5 sen on Thursday, valuing the company at RM183.24 million.