#Hong Kong #Lawsuit #TROOPS

TROOPS, Inc. Faces Legal Challenges in Hong Kong

On July 2, 2025, TROOPS, Inc. (NASDAQ: TROO) announced a crucial update regarding a judgment issued by the Hong Kong High Court. This ruling pertains to an ongoing case that has implications for the company and its subsidiaries. The legal battle, labeled as action no. HCA 938/2022, involves several parties and was initiated in August 2022. TROOPS, along with its subsidiaries like SGOCO International (HK) Limited and First Asia Finance Limited, has been embroiled in litigation that questions the legitimacy of their business operations and has imposed significant restrictions on their assets.

Background of the Legal Dispute

The case began when TROOPS and its subsidiaries were served a writ of summons and faced injunctions that restricted their ability to manage their assets globally. The injunctions were particularly aimed at preventing any actions that might diminish the value of the companies' assets, roping in multiple subsidiaries across Hong Kong. Following this, TROOPS sought to have these injunctions lifted, but the court proceedings took place from May to June 2023 without a favorable outcome at first.

After a lengthy legal battle, the High Court delivered a judgment on June 23, 2025, ordering TROOPS and its subsidiaries to be jointly liable for a staggering total of HKD 405.8 million (approximately USD 51.5 million). This ruling marks a pivotal moment for the company and potentially threatens its prior operational stability.

Company’s Response

Management expressed disappointment with the ruling, asserting the lawsuit lacks merit. They believe the allegations made, particularly by liquidators FTI Consulting, are baseless and stem from a restructuring plan that involved divesting low-value assets to maintain operational health. In light of the judgment, TROOPS asserted its intention to fight the ruling, contemplating a Notice of Appeal to overturn the decision in higher courts.

Furthermore, the management is mobilizing shareholders to take collective legal action against FTI Consulting in U.S. courts, citing malicious prosecution and the potential harm inflicted on investors. Shareholders have been encouraged to register interest in this upcoming legal maneuvering.

Implications for Stakeholders

The judgment and the subsequent legal strategies could have far-reaching effects on both the company’s operational dynamics and investor confidence. The leadership at TROOPS is committed to defending the interests of shareholders while navigating this tumultuous legal landscape. They are optimistic about overturning the decision through appeal and protective actions.

The company reassures investors that it is actively reviewing all legal avenues and is dedicated to providing updates regarding the situation as it evolves. They are steadfast in pursuing justice not only for the company but especially for its shareholders, whose trust is seen as paramount for the company's future.

About TROOPS, Inc.

With its headquarters in Hong Kong, TROOPS, Inc. operates in various sectors, including money lending, real estate investment, and providing financial technology solutions. The conglomerate aims to create value for shareholders through diversified operations while managing a sustainable business environment.

For ongoing updates about TROOPS, Inc. and further information regarding this legal situation, stakeholders are encouraged to visit the company’s investor relations website or contact their strategic management team directly. As this case unfolds, the company's future hangs in balance, poised between legal challenges and opportunities for strategic redress and shareholder support.