#Canada #Toronto #Prollenium #Ario Khoshbin #Revanesse

Legal Battle for Shareholder Rights

In a noteworthy move that has drawn attention within the business community, Ario Khoshbin, the founder and former Chief Executive Officer of Prollenium Medical Technologies Inc., has launched legal proceedings against several entities, including ArchiMed SAS. This lawsuit, filed on May 16, 2025, in the Ontario Superior Court of Justice, primarily raises allegations of shareholder oppression as stipulated by the Canada Business Corporations Act. It also includes claims regarding breach of contract and wrongful dismissal, spotlighting a corporate dispute that has significant implications.

The Journey of Prollenium

Founded in 2002 while Khoshbin was still a university student, Prollenium Medical Technologies has grown into an industry leader known for its innovative hyaluronic acid dermal fillers, particularly the global brand Revanesse®. Over two decades, Khoshbin transformed Prollenium into a well-respected player in the aesthetics market, securing distribution channels in over 80 countries and establishing advanced manufacturing capabilities.

In 2021, a pivotal change occurred when Khoshbin sold a majority stake in Prollenium to ArchiMed, a European private equity firm. Although he maintained the role of CEO and retained a significant minority stake along with a position on the board, Khoshbin alleges that his influence dwindled after this transaction.

Allegations of Oppression

According to the Statement of Claim, after the acquisition by ArchiMed, the company began to operate in ways that marginalized minority shareholders like Khoshbin. He points out a troubling shift towards prioritizing short-term financial goals over the long-term vision that originally defined the company's strategy. Khoshbin claims that he was increasingly excluded from critical governance decisions, leading to his abrupt removal from the CEO position on April 4, 2025, under circumstances he describes as unjust.

Khoshbin contends that his departure was not voluntary, contradicting the public statements made to suggest otherwise by the defendants in the case. He asserts that he was removed without any formal performance review process, despite his stated willingness to ensure a smooth transition. Furthermore, the claim suggests that ArchiMed had already selected Walter Geiger, an operating partner without a Canadian work permit, to assume the CEO role before Khoshbin's ouster.

Continuing Commitment

Despite the challenges he faces, Khoshbin remains dedicated to Prollenium's ethos and its employees. His statement reflects a sense of pride in what he has accomplished with Prollenium and a commitment to its mission, despite feeling betrayed by the recent developments.

As the lawsuit unfolds, Khoshbin seeks various remedies, including a court-ordered buyout of his shares at fair market value, compensation for wrongful dismissal, damages for the alleged breach of contract, and redress for reputational harm. As of now, these claims have yet to be tested in court.

Impact on the Aesthetics Industry

The outcome of this legal battle could potentially reshape the landscape of the aesthetics industry, especially in the context of governance and minority shareholder rights. The developments surrounding Prollenium serve as a pertinent reminder of the complexities involved in corporate governance and the importance of transparent operations within powerful private equity-backed businesses.

In an ever-evolving industry where innovation and integrity are crucial, many stakeholders will be watching closely as this case progresses, hoping for a resolution that champions fair practices and safeguards individual rights within corporate structures.