Beverage giant Pokka has settled its $10 million lawsuit against former chief executive Alain Ong Eng Sing, the two parties announced yesterday.

In a High Court suit filed in July last year, Pokka accused Mr Ong of being involved in a conspiracy that caused the drink maker to suffer at least $10 million in losses. Mr Ong then lashed back with various allegations against his former employer in a counterclaim.

The joint media statement yesterday said: "Parties are pleased to announce that they managed to resolve their differences amicably and wish each other well in their future endeavours. In the spirit of settlement, Alain would further like to withdraw all allegations made in his counterclaim in the suit."

It is understood the two-line statement is part of the settlement agreement.

In its suit, Pokka accused Mr Ong of working with others to divert business to another beverage company, Asian Story Corporation (ASC), and of inflating ASC's value in anticipation of its acquisition by coffee shop operator Kimly.

Pokka alleged that Mr Ong, whose wife is actress Vivian Lai, had breached his duties as a director and employee. Mr Ong was deputy group chief executive of Pokka Corporation (Singapore) and CEO of Pokka International before he was removed in September 2018.

In February 2017, Mr Ong became a non-executive and non-independent director of Kimly, which was listed on Singapore's stock exchange the next month.

In July 2018, Kimly announced its acquisition of ASC for $16 million, but the deal was later aborted.

According to Pokka's court filing, ASC, which has no manufacturing or distribution capabilities, was set up in 2009 by Mr Amos Wang, a former Pokka International employee.

It said that on Mr Ong's advice, Pokka entered into a manufacturing agreement with ASC to develop recipes and make Asian drinks on behalf of ASC. Pokka alleged Mr Ong's true intention was to rely on the Pokka brand to promote ASC drinks.

Pokka claimed it suffered losses of more than $10 million from, among other things, the diverted Asian drink business.

Mr Ong, in his defence, argued Pokka had always marketed itself as a premium Japanese beverage brand and attempts to venture into Asian drinks met with little success.

He said the decision to sign on ASC - which was approved by the board and management - was a strategy to attack Yeo Hiap Seng.

He also claimed he was ousted for having raised concerns about "questionable practices" in Pokka, including the alleged sales of products in North Korea.