SINGAPORE - China Star Food Group said the Singapore High Court has dismissed claims against the company brought by Cheong Chee Hwa, the sweet potato snacks maker said in a bourse filing on Monday night (April 2).
Mr Cheong Chee Hwa had claimed a sum of $2.54 million, or damages to be assessed, for breaches alleged to have been committed by the company in relation to the sale of his shares in China Star Food to the company in connection with its reverse takeover.
China Star Food said that according to the court's written judgement, dated March 29, Mr Cheong had failed to show there was a breach of a sale and purchase agreement entered between both parties in 2014, as well as a supplemental agreement.
He also did not prove the implied term, in which he alleged the company was not to "unilaterally undermine the value of the shares", and hence the value of the shares issued to him, said the company.
China Star Food said it will be awarded the costs of the lawsuit.
Mr Cheong has until April 29 to appeal the High Court's decision to Singapore's Court of Appeal, it added.