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[Alpha Biz=(Chicago) Reporter Paul Lee] FCP decided to directly file a shareholder representative suit after KT & G's board of directors refused to file a lawsuit by activist hedge fund Flashlight Capital Partners (FCP) to "claim 1 trillion won in damages against former and current directors."
Earlier, FCP requested KT & G to file a lawsuit against 21 former and current internal and external directors, including Baek Bok-in, the current president of KT & G. Since 2001, they have caused damage to the company by incinerating or selling some 10 million KT & G treasury shares and giving them to foundations and funds free of charge without using them to enhance shareholder value.
KT & G announced that it will not file a lawsuit, and FCP has the right to file a shareholder representative lawsuit from the 10th of this month, 30 days after the date of filing the lawsuit.
As a result, KT & G is expected to inevitably fight in court. Earlier, FCP filed a lawsuit against KT & G for the reading and copying of the minutes of the board of directors, and the court allowed a copy of some of the accounting books and documents.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
