'Delisting Reversal' Gamanu Shareholders All Lose First Trial for Damages Against Exchange

[Asia Economy Reporter Yoo Byung-don] Shareholders of the KOSDAQ-listed company GammaNu (now THQ), whose delisting was reversed for the first time in history, lost the first trial lawsuit against the Korea Exchange demanding compensation for losses incurred during the orderly liquidation sale.

The Civil Division 11 of the Seoul Southern District Court (Presiding Judge Kim Sang-gyu) ruled on the 24th that 262 shareholders who held GammaNu stocks lost the damages claim of approximately 4.6 billion KRW against the Korea Exchange. The court also dismissed two other lawsuits filed by other small shareholders of GammaNu with the same purpose.

Previously, GammaNu’s delisting was confirmed due to a disclaimer of opinion from the auditor, and an orderly liquidation sale was conducted for five trading days starting from September 28, 2018. The stock price, which was 6,170 KRW just before the liquidation sale, plummeted to 408 KRW.

The orderly liquidation sale is a system that grants a period for investors to dispose of their shares after a delisting decision, during which price limits do not apply.

Subsequently, GammaNu’s injunction request to suspend the effect of the delisting filed against the Exchange was accepted, and the lawsuit filed by GammaNu to nullify the delisting also resulted in a final ruling in favor of the plaintiff.

Following the favorable ruling, GammaNu resumed normal stock trading in August 2020, but shareholders who sold their shares at a low price during the liquidation sale suffered losses.

Accordingly, the shareholders filed a lawsuit claiming that the Exchange should compensate for the difference between the normal price of 6,170 KRW just before the liquidation sale and the price at which the shares were sold during the liquidation sale.

This content was produced with the assistance of AI translation services.