Suit for Damages in Relation with Gloworks’ Market Manipulation
Gloworks Co., originally manufacturer of learning machine, confronted with a difficulty in doing its business distributed false information regarding its new business through media that the company became the 50% shareholder of a Mogolian goldmining company, that the expected revenue amounts to 370 billion won, and that the rate of operating profit is expected to be 40% in the late 2009. As such, the market price of the company soared up 5 times from 545 won in April to 2,690 won in August. According to the investigation of the prosecutor’s office, all this information was false, and Park Sung Hoon, CEO of the company, sold all his shares of the company as the market price of the company soared up making 70.3 billion won of unjust enrichment. The prosecutor’s office indicted him and other 4 related persons in charge of the violation of Capital Market and Financial Investment Business Act on May 2011. Currently Gloworks is delisted from KOSDAQ. As such, investors who purchased the securities of the company from April 29, 2009, when the false information began to be distributed, to May, 2011, when the company’s wrongdoing was revealed, raised this complaint against the company and Park Sung Hoon.