Creative awarded S$36 million in legal proceedings against Huawei

CREATIVE Technology and its subsidiary QMax Communications on Wednesday updated that the Court has issued its judgement, holding Huawei International liable for misrepresentation and being "grossly negligent" when it was vendor for Creative's wireless broadband project.

The Court also held that Huawei was liable for breach of contract. Consequently, the Court ordered Huawei to pay Creative and QMax a total of about S$36 million, inclusive of interest to-date.

Earlier, Creative and QMax had sought to recover damages and all losses suffered in relation to its wireless broadband project against Huawei for misrepresentation or alternatively, for breach of contract.

Huawei had in turn filed a counterclaim seeking relief which included damages for the alleged wrongful rescission and/or termination of the contract. Huawei's counterclaim was ultimately dismissed.

In addition, costs of the legal proceedings were awarded to Creative and QMax.

Creative said in its statement: "The judgment is appealable to the Court of Appeal. In the event that the judgment is not appealed, the judgment sums will be recognised in the company's financial statements for the current quarter ending 30 September 2017."