Northwire Canada EditionWednesday, August 12, 2026
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Regulatory

Zentek prevails in Eveleigh's lawsuit

By The Northwire Desk — AI Analysis Mar 13, 2026 · 17:15 ZEN · 0.83 Zentek Ltd.
ZEN · Price

Executive Summary

  • Zentek Ltd. received a favorable judgment from the Ontario Superior Court of Justice dismissing substantially all claims brought by former founder and CEO Aubrey Eveleigh and his consulting firm.
  • The court denied all remaining monetary claims originally exceeding $6 million, including success fees, severance, unpaid wages, defamation damages, and indemnification costs.
  • The court also rejected Zentek's claim for cancellation of 4.5 million founder shares, finding they were properly issued.

Key Details

  • Court Decision: Ontario Superior Court of Justice (Commercial List) issued reasons for judgment dated March 12, 2026, in companion actions Eveleigh et al. versus Zenyatta and Zentek v. Eveleigh et al., 2026 ONSC 1510.
  • Litigation Background: Arose from the removal of Aubrey Eveleigh (founder, former president, and CEO) by shareholders at a special meeting on May 11, 2018.
  • Monetary Claims Denied:
    • Success Fee: $282,500 claim denied because the prefeasibility study required to trigger payment was never commenced.
    • Severance: $1.35 million in claims under the president's agreement and related memorandum found void and unenforceable due to breaches of fiduciary duty.
    • Unpaid Wages: $51,748.82 claim denied.
    • Defamation Damages: $75,000 claim denied; court found relevant statements were factually accurate.
    • Indemnification: Approximately $194,000 in costs and disbursements denied.
  • Share Cancellation Claim: The court found no basis to set aside the issuance of 4.5 million founder shares, ruling they were properly issued.

Notable Quotes

  • "This judgment closes a chapter that has been part of Zentek's history since before I arrived on Dec. 1... The court's decision speaks for itself. What matters now is execution -- on Albany, on ZenGUARD, on Triera and on building the foundation this company deserves. We move forward." — Moe Jiwan, CEO of Zentek
Read the original news release →

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