Zenith"s Small Stockholders Sue LGSmall stockholders of the United States' Zenith Corp. filed a lawsuit on January 27 against LG, Zenith's major shareholder.
A source from LG Electronics' Zenith Support Team said, 'The small shareholders sued us twice last August and again this month in a New Jersey state court for Stockholders' representative and recognition rights'.
They assert that they will incur financial damage if LG's restructuring plan is executed thus abolishing past shareholder's rights.
This is the first time foreign small shareholders have filed a suit against a Korean company.
According to the bill of complaint, LG purposely denied Zenith a chance to grab management power which caused Zenith stocks to fall from six dollars to near the one-dollar level.
LG is responding that it too has lost tremendous amount of dollars in the course of undertaking Zenith and that the recent restructuring movement to save the company is still on the go.
Zenith's small stockholders retain about 43 percent of the 67 million shares while LG Group holds 55 percent.
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