 |
(Photo=SillaJen) |
[Alpha Biz= Reporter Kim Sangjin] On August 26, Shinilajen announced that it has lost the final appeal in a lawsuit related to stock options involving former executives. The case, which has been ongoing for approximately six years, has now been concluded with a decision from the Supreme Court of Korea.
The Supreme Court's ruling confirms Shinilajen's obligation to refund a deposit previously made during the appeals process. After deducting some interest, the company expects to recover around 5.5 billion won from the deposit.
Previously, Shinilajen's former management had contested the stock option payments to a departing executive, leading to a lawsuit. In 2019, the court ruled that Shinilajen should pay 5.7 billion won in cash. The company deposited this amount as a bond while appealing the decision. Despite the appeal, Shinilajen lost in the second trial. The management decided to deposit an additional 5.7 billion won and took the case to the Supreme Court. Over the four-year legal battle, Shinilajen underwent a complete change in its major shareholders and executive team.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
