 |
Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Shin Dong-joo, former Vice Chairman of Lotte Holdings Japan and current Chairman of SDJ Corporation, has filed a shareholder derivative lawsuit against his younger brother Shin Dong-bin, Chairman of Lotte Group, and five other executives of Lotte Holdings Japan. The lawsuit was filed with the Tokyo District Court, according to a report by the Yomiuri Shimbun on July 5.
In the complaint submitted on July 4, Shin Dong-joo argues that Chairman Shin’s 2019 conviction in South Korea for bribery involving former President Park Geun-hye damaged the company’s reputation and caused financial harm. He claims that Lotte Holdings’ management failed to properly respond to the situation and is demanding compensation of 14.4 billion yen (approximately 136 billion KRW or $88 million) be paid to the company.
A shareholder derivative suit allows shareholders to hold executives accountable on behalf of the company when it is believed that mismanagement or misconduct has harmed the firm.
The lawsuit follows Shin Dong-joo’s failed attempt to return to Lotte Holdings’ board. His proposal to be reinstated as a board member was rejected during the company’s annual general meeting last month. Shin has been seeking to regain a leadership role at Lotte since the so-called "brothers’ feud" in 2015, but has not succeeded over the past decade.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
