Rongta Technology Faces Higher Damages Claim in Trade Secrets Case

MT Newswires Live
10/21

Rongta Technology (Xiamen) Group (HKG:9881) said a Xiamen court ordered a case against the company transferred to the Fujian Provincial High People's Court after the plaintiff raised its damages claim above 200 million yuan, according to a Hong Kong bourse filing Monday.

Shares of the provider of identification and data capture solutions fell nearly 13% in late morning trade Tuesday.

Xiamen Pinnacle Electronics, which initially filed the civil complaint with the Intermediate People's Court of Xiamen City, raised its claim nearly fivefold to 975.2 million yuan.

The plaintiff also asked that Rongta Chairman and controlling shareholder Xu Kaiming be added as a co-defendant.

The case stems from the alleged misappropriation of trade secrets by a former employee of Xiamen Pinnacle. The company said it has denied the claims and will defend itself against the allegations.

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