Gome Planning Legal Action

Gome filed a writ of summons in the High Court of Hong Kong against Huang for a claim for damages, the company said in a statement to Hong Kong?s stock exchange Thursday.
Huang, also known as Wong Kwong Yu, was in May sentenced by a Beijing court to 14 years in prison after being found guilty of bribery and insider trading. The SFC accused Huang and his wife of stock-market fraud in August last year.

The arrest and conviction “caused a great deal of uncertainty for the company,” Gome said. This “has had, and to some extent continues to have, a significant adverse effect on activities, and in particular the ability to access capital.”

Huang and wife Lisa Du Juan, are being investigated by Hong Kong?s Securities and Futures Commission for allegedly having Gome buy back shares in 2008 to help them repay a HK$2.4 billion ($309 million) personal loan. Huang still owns 34 percent of Gome, according to data compiled by Bloomberg.

Source : Konaxis

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