On Accounting Fraud of Neosemitech

   Hit. 138

NeosemiTech Co.(“the company”) was a backdoor listed company in KOSDAQ by being merged into Monosolar Co. on October 6, 2009. After being listed, the company’s market cap was over 500 billion won, and received wide attention from media as well as many institutional investors as recognized as the leading company in the solar light industry. The company, however, on September 3, 2010, not long after getting into KOSDAQ, got out of KOSDAQ after the financial authorities found out the company’s window dressing activities such as recording false revenue or recording expense as asset. As such, Investors who purchased the securities of the company as well as the bonds with warrant from April 8, 2008, when the audit report for the year of 2007 was issued, and to May, 2011, when the company’s wrongdoing was revealed, raised this complaint against the company, the management of the company, and the, auditor of the company for their damages.

All cases concluded at the first trial; settlement with the accounting firm and favorable ruling (100% admission of all claimed amount) against CEO and related parties.