In the hours following the South Korean Supreme Court’s decision to reject an appeal by the Financial Service Commission on imposing disciplinary actions on Samsung BioLogics, the biopharma firm’s stocks rallied on Tuesday.
The biopharma arm of Samsung Group closed 1.25 percent higher from the previous trading session at 283,500 won ($237.58).
Samsung BioLogics (Yonhap)
The Securities & Futures Commission, a legal watchdog under the FSC, filed an appeal at the Supreme Court in May, after the lower courts ruled in favor of Samsung BioLogics on two separate occasions earlier this year, thus denying its request to immediately dismiss the firm’s CEO and CFO, pay fines and more.
The FSC in November 2018 requested the biotech drug arm of Samsung to follow its disciplinary actions, accusing it of violating accounting rules in 2015.
Samsung BioLogics responded in the same month by filing an administrative lawsuit in an attempt to nullify the financial regulator’s sanctions, while denying any wrongdoings.
Samsung BioLogics has apparently bought more time through the latest top court decision.
The firm is suspected of inflating its valuation by approximately 4.5 trillion won in 2015, ahead of its scheduled initial public offering in 2016.
By Jung Min-kyung (email@example.com)