Home > Latest News > Just An ‘Accounting Issue’ Claims Harry” Chatlani After Being Sued By Kogan

Just An ‘Accounting Issue’ Claims Harry” Chatlani After Being Sued By Kogan

A US Company who Kogan took action against is now blaming “Accounting” issues after Kogan accused one Harish “Harry” Chatlani who runs a global footwear and apparel export operation from his home in Beverly Hills, of duding the local online retailer despite Kogan paying him tens of thousands on multiple occasions for goods that they claim did not arrive.

Now Chatlani has written to ChannelNews claiming that everything “Was a misunderstanding” and that we should modify our original story, yjhis is the same business that claims that they are a long time supplier to catch.com.au.

Attached to his correspondence was a letter signed by David Shafer a director at Kogan that read ““Kogan Australia Pty Ltd., Pacific Link Traders LLC, and Harish Chatlani are jointly announcing that they have reached a settlement concerning a suit brought on by Kogan in the US courts”.

Both parties worked together to clarify the misunderstanding that was caused by an accounting issue.

The matter has been amicably resolved. Both parties will continue to maintain their long-valued relationship.”

Originally Kogan described Chatlani of taking his money and not supplying goods.

Chatlani has not explained why if it was an ‘accounting issue” why was the matter not resolved before Kogan had to resort to taking expensive court action in a US Court to get the issue resolved.

It’s also not known whether Chatlani and Pacific Link Traders has had to pay any of Kogan’s legal fees to settle the action.

Kogan initially claimed that Harish “Harry” Chatlani was contacted in 2020, and that an initial order was placed and paid for upfront.

When the order did not arrive and with no refund in sight Kogan.com kept on booking and paying tens of thousands of dollars for even more shipments.

Kogan has failed to explain why they kept paying for goods.

Not only did Kogan keep paying upfront, but they also continued to order goods at least eight times despite each shipment missing items or not arriving at all.

At one stage Chatlani cancelled an order worth $US50,000 ($76,500) before it was shipped, after being paid by Kogan.com, and then refused a refund.

Chatlani dodged is calls and his whereabouts are today unknown.

Ironically his correspondence to ChannelNews has no contact number or address.

Kogan.com in turn sued Mr Chatlani’ s Pacific Link Traders, claiming the US supplier has been “unjustly enriched at Kogan’s ­expense.”

It’s also been revealed that when a process server turned up at Mr Chatlani’ s residence in Beverly Hills a woman answered the door and said Mr Chatlani “was out of town and would not return for four weeks”.

Then came a letter from his lawyers claiming that Mr Chatlani was “going to be travelling for approximately two months” and would respond to the matter “in due time.”

Kogan.com initially paid Pacific Link Traders $US27,375 for merchandise.

When the shipment arrived, $US3439 worth of goods were missing. No refund was provided.

A glutton for punishment Kogan management then paid an additional $US176,120 for purchases, but Pacific Link Traders failed to deliver $US10,971 worth of goods.

In November 2021, Kogan.com paid $US65,591 and $US65,082 for two invoices.

Two months later, Kogan.com inadvertently made two more payments on the invoices of $US67,126 and $US66,541.

“Despite the obvious error, Pacific Link Traders accepted the payments and made no offer to refund Kogan,” the court documents said.

The saga then gets messier, in the middle of COVID in 2022 when Kogan was price gouging consumers, and struggling to house stock, the Company placed yet another order, paying $US109,923, but $US7391 worth of merchandise was missing from the shipment.

Not put off by this, Kogan.com paid $US49,715 upfront for goods but this time Pacific Link Traders cancelled the order and refused to pay a refund. In August 2022 Kogan.com paid $US60,440 but $US12,302 worth of merchandise missing from the shipment.

In December 2022, Kogan paid $US111,731 but $US1207 worth of merchandise was missing. In March 2021 there was an order from Kogan.com for €694,008 ($1.145m) of goods but €12,628 worth of goods were missing.

In total Kogan.com paid $232,262.32 for goods that were not shipped by Pacific Link Traders or received by Kogan.com.

Kogan shares have fallen over 35% during the past six months and are now trading at $5.12.

No announcement of the US Court settlement has been made to the ASX.



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