SINGAPORE - DMX Technologies Group said on Friday it began legal action in Singapore's High Court on Oct 5 against former auditor Deloitte & Touche for a claim for loss and damage suffered as a result of its professional negligence and will be seeking unliquidated damages to be assessed.
The mainboard-listed digital media and software provider added that further announcements will be made when there are material developments in the case, and that shareholders are advised to exercise caution when dealing with the firm's securities.
The lawsuit stems from events that began in 2015.
In that year, DMX has fired its chief executive Jismyl Teo, chief financial officer Skip Tang and executive chairman Emmy Wu, alleging serious misconduct and negligence in performing their duties.
The decision came days after an external investigation committee appointed by DMX's parent KDDI Corp submitted is report last month. The committee was tasked to investigate alleged improper transactions by DMX in 2008 and 2009, which led to the arrest of its CEO and CFO in February 2015.
According to the report, the contentious transactions and their accounting surfaced only after DMX appointed Pricewaterhouse Coopers Singapore as its auditor for to replace Deloitte & Touche which had been DMX's auditor since its incorporation in October 2001.
Trading in DMX shares has been suspended since March 25, 2015.