Shanghai Turbo unit awarded compensation in suit against ex-director

Singapore

SHANGHAI Turbo is finally seeing light at the end of the tunnel in its convoluted legal tussle against Liu Ming, its former group CEO and executive director, and other defendants in China.

Its subsidiary, Changzhou 3D Technological Complete Set Equipment, has been awarded 504,300 yuan (S$97,920) in compensation in a legal suit taken out against Mr Liu and six ex-employees, according to Singapore Exchange filings.

In August 2017, Changzhou 3D took legal action against the seven of them in China in relation to a dispute over the handover of its factory there. The case was filed in the Zhonglou District People's Court in Changzhou. Changzhou 3D had sued them for civil trespass and claimed damages - including workers' wages, security guard fees and temporary offsite office rental for employees - amounting to 15.4 million yuan.

On Dec 17, 2019, the Zhonglou District People's Court found Mr Liu and three of the defendants liable to compensate Changzhou 3D for temporary offsite office rental amounting to 72,300 yuan and security guard fees of 432,000 yuan. The four defendants were also ordered to pay court costs amounting to 8,843 yuan.

The claims for workers' wages and profits were not allowed. The claims against the remaining defendants were also dismissed.

Changzhou 3D accepted the court's decision, citing "continued impact to the business caused by prolonged litigation and uncertain judicial outcome in an appeal". It has spent about 1.03 million yuan in legal expenses to date.

The four defendants were given until Jan 1 to file an appeal, and up to 10 days thereon to pay the compensation. Changzhou 3D said it will update shareholders on progress in relation to the Chinese court's judgment.

Shares of Shanghai Turbo closed unchanged at S$1 on Tuesday.