Tencent Music Battles Last-Minute IPO Lawsuit, Vows Vigorous Defense
Tencent Music faces a significant legal challenge just days before its IPO, as investor Hanwei Guo files a lawsuit claiming he was forcefully stripped of his 80% ownership in Ocean Music (now Tencent Music).
Charging bronze bull on Wall Street
Key Claims of the Lawsuit:
- Guo invested "tens of millions of dollars" for an 80% stake in Ocean Music
- Co-President Guomin Xie and others allegedly used threats and misinformation to force Guo to surrender control
- Guo claims he was denied shares during the IPO preparation
- Lawsuit filed in US District Court, Southern District of New York
Tencent Music's Response:
- Company vows to "vigorously" contest all claims
- Acknowledges potential "material adverse effect" on reputation and finances
- Warns of significant resource allocation needed for legal proceedings in China
- Notes possible future legal actions against company directors and officers
Similar Pre-IPO Challenge: Spotify faced comparable issues before its direct listing, with Tanweer Khan making unsubstantiated claims against the company and his brother, Shakil Khan, targeting both the company's ethics and board of directors.
The case highlights the increasing prevalence of legal challenges faced by major tech companies during crucial financial moments, particularly ahead of public offerings.
Businessman checking phone with charts
Stack of Chinese yuan bills
Bulls grazing on hillside
Related Articles
Artist Partner Group Files Lawsuit Against Create Music Group Over Artist Poaching and Copyright Violation
