DMX sues former management and subsidiaries in Hong Kong's High Court

SINGAPORE - A unit of DMX Technologies Group has filed a writ of summons against its former management, one of its subsidiaries and two other companies for irregular accounting practices in Hong Kong's High Court on Thursday (April 7).

Four former executives namely, Mr Skip Tang, the former chief financial officer, Ms Jismyl Teo, former director and chief executive officer, Mr Emmy Wu, former director and Mr Fu Yan Yan, former general manager (China) of DMX Hong Kong, were sued together with DMX Hong Kong and two other companies Mozart Management, and Tacoma Associates.

According to investigations by the mainboard-listed digital media and software provider, unauthorised payments were made to Mozart by DMX Hong Kong's clients, while DMX Hong Kong has also made unauthorised payments meant to be made to its contracting parties to Tacoma between 2008 and 2012.

As of Dec 31, 2014, the aggregate amount paid to Mozart was US$188 million (S$254.3 million), and this company appears to be controlled by Ms Teo and Mr Tang, said DMX in a Singapore Exchange filing on Thursday (April 7).

In the writ of summons, it is alleged that Ms Teo, Mr Tang, Mr Fu, Mozart and Tacoma conspired to deprive or delay payments to DMX Hong Kong by its clients, derive benefits from the receipt and retention of monies by Mozart and derive benefits from the receipt and retention of monies by Tacoma.

DMX's Bermuda-incorporated wholly owned subsidiary DMX BVI is claiming against Mozart and Tacoma all the sums due to DMX Hong Kong.

It is also claiming against the former management for an order that each of them account to DMX Hong Kong or any of DMX Hong Kong's property that he or she has misapplied, damages and equitable compensation, together with all interests and costs.

The company said it will take steps to disclose the findings of the investigations in a report to shareholders as soon as practicable.

kohping@sph.com.sg

Correction Note: An earlier version of this story stated that Mozart Management and Tacoma Associates are subsidiaries of DMX Technologies Group. We are sorry for the error.