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DMX Tech and Hong Kong unit sued in the territory
DMX Technologies Group Limited announced on Monday that a writ of summons against the group and its Hong Kong subsidiary DMX Technologies (Hong Kong) Limited has been filed by Chinacast Education Corporation (CEC) in Hong Kong.
The group, its Hong Kong subsidiary and one other company Mozart Management Co Limited (Mozart) were named as defendants in the writ of summons filed on on Aug 12.
CEC, which provides post-secondary education and e-learning services in China, is claiming a sum of some US$4 million from Mozart, DMX group and DMX HK "as constructive trustees".
DMX said that it intends to vigorously defend the claim and will make such further announcements when appropriate.
Last month, DMX also disclosed that Anken HR Limited has commenced action against the group in Hong Kong on June 23, claiming a sum of S$55,000, which is the fee purportedly due to Daniel Kung, a former group director for his service as an independent director for the financial year ended 2014.
Shares of the company have been suspended from trading since March last year. An investigation last year revealed irregular accounting practices at two of the company's subsidiaries in 2008 and 2009, prompting DMX to lodge a police report with the Hong Kong police.