The Thai Investors Association (TIA) has submitted a complaint to the Southern Bangkok Civil Court on behalf of investors in Stark shares.
Stark Corporation Public Company Limited is a Thai holding entity operating within the electric cable manufacturing sector. Established in 2019 via a backdoor listing, it gained a position on the SET100 index. However, in 2023, the company experienced a significant decline in value following the revelation of falsified financial statements.
The class action is brought on behalf of common stock investors who engaged in the purchase or sale of Stark shares between 11 May 2021 and 16 June 2023. This timeframe coincides with the release of financial statements for 2021 and 2022 by STARK, which were found to contain misleading information.
The publicly listed wire and cable manufacturing firm and its former executives are under suspicion of fraudulent activities and attempting to conceal the company’s accumulated losses amounting to 12 billion baht (380 million US dollars) during the years 2021-2022, of which 4 billion baht is reportedly negative shareholder equity.
Established in 1989, TIA aims to safeguard the interests of retail investors within the Thai stock market. In this instance, it represents plaintiffs who have been adversely affected by their investments in Stark common shares. The case, designated as P.1061/2567, has been filed against Stark, Adisorn Songkhla Company Limited, Thai Cable International Company Limited, Asia Pacific Drilling Engineering Company Limited, and six individuals, totaling ten cases.
In a related development, the Criminal Court in Bangkok has accepted a petition from seven asset management firms that suffered losses due to the fraudulent activities purportedly perpetrated by Stark. These firms are collaborating with the prosecutor to bring criminal charges against the SET-listed company for eight counts of fraud and public deception.
The seven firms had invested in Stark by acquiring shares through private placements before it became known that the company had allegedly misappropriated the funds raised from the capital increase while simultaneously disseminating false financial statements to the public.
