May 6, 2026  ·  Updated July 14, 2026

By David Brunk, civil litigation attorney

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Devaiah v. Prasannachar sees fiduciary breach claims in Ohio court over S4M Investments' management actions Alleges Misuse of $140,000 in Renovations

Shilpika Devaiah has initiated legal proceedings in the United States District Court for the Northern District of Ohio, Eastern Division, No. 1:26-cv-01058, against her business partners, Muralidhara Prasannachar and Smitha Muralidhara, as well as S4M Investments LLC. The dispute centers on Vande Ayurshilpi Ayurveda LLC, the jointly owned entity in which Devaiah holds a 49% interest. The complaint alleges the defendants engaged in breaches of fiduciary duty and other mismanagement actions that have compromised the operational viability of the Company and Devaiah's interest in it. Specifically, Devaiah is seeking damages and the judicial dissolution of the LLC, citing acts that allegedly include misuse of Company funds for personal benefit and obstruction of business operations without her consent.

Formed on April 24, 2023, Vande Ayurshilpi Ayurveda LLC was intended to capitalize on Devaiah's established Ayurvedic wellness practice. However, according to the complaint, the defendants have undermined this goal through repeated attempts to divert business opportunities and engage in self-dealing, effectively stripping Devaiah of equitable interests in properties renovated using Company resources. The alleged conduct has made the continued collaboration among the Company members untenable, precipitating Devaiah's request for judicial intervention.

The complaint sets forth a range of grievances, including claims that substantial expenses were incurred by the Company for the benefit of S4M Investments LLC, an entity directly controlled by the defendants. These expenditures purportedly involved characterizing such outlays as loans without proper agreement or documentation, in what Devaiah asserts is a clear breach of fiduciary responsibilities and a misuse of Company assets. Legal remedies sought include compensatory damages, a full accounting of Company finances, and several forms of equitable relief, including a constructive trust over assets potentially misappropriated by the defendants.

Alleged Misuse of Company Funds

The complaint filed by Shilpika Devaiah, a 49% member of Vande Ayurshilpi Ayurveda LLC, alleges significant misuse of company funds by the defendants. Devaiah claims that the company expended $140,000 on renovating a property located at 17119 Madison Avenue, which is owned by S4M Investments LLC, an entity controlled by the defendants. According to the filing, the defendants characterized these expenditures as a 'loan' in the company’s tax filings, a move Devaiah asserts was made without her consent or agreement (Compl. ¶5). This classification, the plaintiff contends, misrepresented the nature of the financial transactions undertaken by the company, lacking any formal documentation or agreement recognizing the arrangement as a loan (Compl. ¶53).

Additionally, Devaiah alleges that the company also paid between $20,000 and $25,000 in property taxes on the S4M-owned property. This payment further enabled the enhancement of a property that neither Devaiah nor the company were entitled to benefit from, owing to the absence of any documented equity interest associated with these expenditures.

The complaint seeks to demonstrate that these actions represent a breach of trust and fiduciary duty by the defendants, by using the company's financial resources to benefit their separate entity without proper authorization or benefit to the company. These allegations are central to the claims of breach of fiduciary duty and unjust enrichment, asserting that the defendants improperly enriched themselves at the expense of the company and its members, undermining the plaintiff's interests.

Alleged Business Interference by Defendants

The complaint filed by Shilpika Devaiah details significant interference in the operations of Vande Ayurshilpi Ayurveda LLC by Muralidhara Prasannachar, a fellow member of the company. According to the filing, in January 2026, Murali unilaterally placed an ACH debit hold on the company's bank account. Further interference is noted with Defendant Murali's unilateral revocation of Devaiah's accountant's access to the company's QuickBooks accounts. The complaint asserts that this action prevented accurate financial oversight and management, thereby undermining Devaiah's ability to monitor the company's financial health and operations.

One of the more charged allegations within the complaint concerns an incident on April 27, 2026. Murali allegedly arrived unannounced at the company premises, where he confronted Devaiah with aggressive behavior. According to the complaint, Murali banged on the door and made intimidating remarks, including threats to alter the situation if Devaiah did not comply with his demands, stating, "Next time, if you do not open the door then, I will make sure to change scenario" (Compl. ¶72). The filing emphasizes that these actions were particularly distressing for Devaiah as she was pregnant at the time, which escalated her concerns about her personal safety and the overall hostile environment created by the defendants' conduct.

These incidents are presented in the complaint as indicative of unrestrained interference by the defendants, highlighting the significant disruption and stress inflicted on both the business operations and the personal well-being of Devaiah. The plaintiff suggests that such conduct demonstrates an impractical environment for collaboration, supporting her claims for judicial dissolution and additional relief.

The Parties and Their Roles

The complaint in Devaiah v. Prasannachar details the roles and ownership distribution within Vande Ayurshilpi Ayurveda LLC, an Ohio-based limited liability company formed on April 24, 2023. Plaintiff Shilpika Devaiah, holding a 49% membership interest, founded the company intending to expand an Ayurvedic wellness practice initially established in Lakewood, Ohio. Devaiah claims she contributed significantly to the company's operations and managed an increase in property value through renovations.

Defendant Muralidhara Prasannachar, who holds a 25% membership, and Smitha Muralidhara, a 26% member, are accused by Devaiah of engaging in considerable misconduct. Devaiah alleges that the defendants used their partial control of the company to redirect resources benefiting entities they control, such as S4M Investments LLC, which owns real estate utilized by the business at 17119 Madison Avenue (Compl. ¶36). These actions allegedly constituted a breach of fiduciary duty, self-dealing, and usurpation of business opportunities, violating the trust of the LLC members.

According to the complaint, these internal disputes and alleged misuse of funds have strained business operations and hindered the potential for amicable interaction among company members. As the allegations stand, the plaintiff asserts that defendants have not only compromised the company's financial standing but have also disrupted its operations, significantly impacting Devaiah's ability to manage and benefit from the business's success.

Claims: Breach of Fiduciary Duty and Judicial Dissolution

The complaint filed by Shilpika Devaiah alleges a breach of fiduciary duty by Defendants Muralidhara Prasannachar, Smitha Muralidhara, and S4M Investments LLC, invoking Ohio law principles. Devaiah contends that the Defendants engaged in self-dealing practices detrimental to Vande Ayurshilpi Ayurveda LLC, in which she holds a 49% membership interest. It is alleged that Defendants utilized Company funds to renovate a property owned by S4M Investments, a separate entity they control, without providing the Company any ownership interest in return.

The Plaintiff further seeks judicial dissolution of Vande Ayurshilpi Ayurveda LLC under Ohio Revised Code §1706.471. Devaiah asserts that the misconduct of the Defendants has made it unfeasible for the Company to continue operations effectively. The Plaintiff claims that their behavior has not only compromised fiduciary duties but has also made collaboration amongst members impossible, thereby justifying dissolution (Compl. ¶93).

The complaint illustrates a consistent pattern wherein the Defendants allegedly prioritize their personal financial gains over their fiduciary obligations to the Company. Such actions, according to Devaiah, not only amount to a breach of duty of loyalty but also signify a conflict of interest that severely undermines the Company's operational viability and the Plaintiff's investment. Furthermore, Devaiah claims that the situation cannot be rectified solely through financial compensation, necessitating a court-ordered dissolution to mitigate further losses (Compl. ¶84).

Claims: Accounting, Self-Dealing, and Unjust Enrichment

Shilpika Devaiah, the plaintiff, is pursuing comprehensive financial relief and accountability measures from the defendants, alleging misconduct related to company resources and property management. Specifically, Devaiah contends that the defendants, Muralidhara Prasannachar and Smitha Muralidhara, engaged in self-dealing by utilizing Vande Ayurshilpi Ayurveda LLC's funds to enhance a property owned by S4M Investments LLC without her consent or benefiting the Company. She argues that this conduct gives rise to the need for a full accounting of the Company's finances and the disgorgement of any profits derived from these actions.

According to the filing, the misuse of company assets includes renovation expenditures amounting to approximately $140,000, aimed at increasing the property's value, with no corresponding benefit or ownership interest conferred to the Company or its members. The plaintiff asserts that such financial maneuvers represent a usurpation of business opportunities that should have benefited the LLC instead of personal interests tied to the defendants (Compl. ¶104-110).

Furthermore, Devaiah claims unjust enrichment occurred as a result of these actions, as the defendants allegedly reaped financial benefits without proper compensation for the contributions or equitable interests due to the Company or herself as a significant percentage owner. She seeks restitution to address these allegations of misappropriation of funds and efforts centered on the property managed by the defendants' affiliate, S4M Investments LLC.

The case, highlighting these claims, underscores the plaintiff's demand for accountability and appropriate compensation, addressing the alleged financial imbalances caused by the defendants' purported self-serving activities within the LLC's operations.

Distinctive Allegations in the Complaint

The complaint filed by Shilpika Devaiah in Devaiah v. Prasannachar highlights several allegations of disrupted control and authority within Vande Ayurshilpi Ayurveda LLC. According to the complaint, the Defendants engaged in actions that materially disrupted the business's operations, including asserting control without proper authority. For instance, it is alleged that Defendant Murali, without collaboration or notification to Devaiah, exerted pressure indicating his intent to assume full operational control of the LLC, stating plans to "take over the operations and run it myself" (Compl. ¶48).

The complaint also points to specific actions by the Defendants that contributed to an eroded working environment. One cited example is an incident on April 27, 2026, where Defendant Murali reportedly appeared unannounced at the company premises. He allegedly knocked on the door and delivered statements perceived as threatening, which Plaintiff Devaiah, who was pregnant at the time, found intimidating. Such conduct, the complaint suggests, supported the Plaintiff's claims that the Defendants' actions made it impracticable for the members to continue operating the Company together (Compl. ¶67-77).

Further, the filing contends that Defendants have habitually reversed prior negotiated agreements crucial to the LLC's restructuring, again acting unilaterally and reversing essential decision-making processes. The lawsuit seeks to address these issues through various legal remedies, including a judicial dissolution of the LLC on grounds that these continuous disruptions render the joint venture's continued operation untenable (Compl. ¶80).

The Plaintiff’s request for judicial action is grounded in a series of such allegations, which collectively bring into question the governance of Vande Ayurshilpi Ayurveda LLC and challenge the Defendants' adherence to their fiduciary duties. The legal proceedings initiated by the Plaintiff aim to resolve these governance disputes and re-establish a fair operational environment for all members involved.

Procedural Posture and Relief Sought

The plaintiff, Shilpika Devaiah, is pursuing multiple forms of relief through her legal action against fellow members of Vande Ayurshilpi Ayurveda LLC. The complaint seeks compensatory damages, a comprehensive financial accounting, and equitable relief, arguing for judicial dissolution of the company under Ohio law as outlined in Ohio Rev. Code §1706.471. Additionally, Devaiah seeks the establishment of a constructive trust and an equitable lien on the property improved with company funds, despite being owned by S4M Investments LLC, a related entity controlled by the defendants (Compl. ¶128-134).

A jury trial has been demanded by the plaintiff, highlighting her stance on the significance of the claimed breaches and misappropriations. The lawsuit underscores the necessity for court intervention to maintain business continuity and protect Devaiah's equity interest in the face of alleged misconduct by the defendants. The plea for judicial involvement reflects her contention that monetary damages alone cannot remedy the disruption and diminution of goodwill experienced.

The allegations described here are taken from the filing and remain unproven; no responsive pleading is reflected in the source document.