A Class Action Suit Filed against Osstem Implant
A class action lawsuit has been filed against Osstem Implant, which suffered an employee’s embezzlement case in 2021.
Osstem Implant said in a public announcement on Jan. 6 that a class action lawsuit was filed for damages due to a sharp drop in its stock price following the embezzlement case. On Dec. 30, 2022, an Osstem Implant shareholder, surnamed Kim, submitted a complaint and an application for permission for litigation to the Seoul Southern District Court.
"Osstem Implant's 2020 business report and documents related to the company’s internal accounting management system had false descriptions or indications regarding important matters that could affect investors' judgment," the plaintiff claimed. The plaintiff demanded 100 million won in damages from the company
The victims were those who bought Osstem Implant shares during the period from March 18, 2021 to Jan. 3, 2022 and sold them off at a lower price than the purchase price between Jan. 3, 2022 and Sept. 5 of the same year.
On the day, media reports said that an implant device released by Osstem Implant in China was judged unsuitable, and the company was told to recall the product.
The Korea Exchange suspended the trading of Osstem Implant stocks for 30 minutes beginning from 10:33 a.m. on the same day. Class action lawsuits related to securities can trigger the suspension of trading under the KOSDAQ Market Disclosure Regulations and Enforcement Rules. The stock price of Osstem Implant tumbled 11 percent in the stock market during the day.