A New York court is allowing a multimillion-dollar lawsuit to proceed against a Chinese real estate portal, in which its directors and controllers allegedly carried out a complex scheme to loot the company from the inside and manipulate the financial market.
On May 2, Manhattan Supreme Court Justice Andrew Borrok denied a motion to dismiss filed by Fang Holdings, a leading real estate internet portal incorporated in the Cayman Islands, citing a well-pleaded complaint by shareholders claiming that the company’s foreign insiders “used and manipulated” the New York financial market in a multistep transaction to “loot” the company and “enrich themselves in breach of their fiduciary duties.” Borrock concluded that the state court had jurisdiction over the matter.
