A huge securities class action suit has been filed against Osstem Implant

This article is translated by AI company Flitto and Alpha Biz neural machine translation technology

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stockmk2020@alphabiz.co.kr | 2023-01-07 01:46:43

 

A huge securities class action suit has been filed against Osstem Implant, the largest embezzlement accident in the history of listed Korean companies, to compensate shareholders for their losses. Osstem Implant announced on the 6th that Kim filed a securities class action suit through Hannuri, a law firm. Kim, who filed the lawsuit, claimed 100 million won as compensation in the complaint, saying, "Osstem Implant should compensate for damages caused by the fall in stock prices due to false entry in business reports and documents related to the internal accounting management system on important matters that could affect investors' judgment." Even if one person files a securities class action suit, if he or she wins, all those who are set within the scope of the lawsuit (the scope of the total number of members) will have the same legal effect. 
The lawsuit begins only when the court permits the commencement of the lawsuit through review, but the court's review has not yet been carried out. In the lawsuit, Kim set up a person who purchased Ostem implants between March 18, 2021 and January 3, 2022, and sold them at a price lower than the purchase price between January 3, 2022 and September 5, 2022. In other words, if Kim wins the lawsuit, investors who suffered losses by buying Osstem Implant shares during the period will be able to receive a total of 100 million won in damages from the company. Although it is difficult to identify the exact trading party, the amount of the lawsuit may exceed 4 trillion won, considering that Osstem Implant had 42,964 minority shareholders as of Sept. 30 last year. Assuming that minority shareholders bought and sold Osstem Implant shares during the period, the company will have to pay them all 100 million won if it loses the lawsuit. The stock price of Osstem Implant was 121,000 won on December 30, 2021, just before the embezzlement was announced. 
Since then, the transaction was suspended immediately after announcing the embezzlement of 188 billion won (later expanded to 221.5 billion won) on January 3, 2022, and resumed on April 28 of the same year as it was decided to maintain the list after three delisting reviews. However, after the resumption of the transaction, Osstem Implant fell to around 90,000 won as its stock price fell sharply due to falling credibility. 
It was not until August 31 of that year that prices were recovered before the suspension of trading. Meanwhile, due to the filing of a securities class action lawsuit, the Korea Exchange suspended the stock trading of Osstem Implants for 30 minutes from 10:33 a.m. on the same day. Securities-related class action suits are grounds for suspension of transactions under the KOSDAQ market disclosure regulations and enforcement rules.

 

 


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