Hoe Leong Corporation Ltd. Receives Positive Court Ruling in Major Litigation

Summary of Recent Developments

Hoe Leong Corporation Ltd. (the “Company”), a Singapore-incorporated company, has announced a significant update regarding ongoing material litigation disclosed in its FY2024 Annual Report. The update pertains to a longstanding legal dispute in the Kuala Lumpur High Court involving the Company and several other defendants, with Tan Sri Halim Bin Saad as the plaintiff.

Key Points from the Court Ruling

• Case Outcome: On 14 November 2025, the Kuala Lumpur High Court ruled in favour of Hoe Leong Corporation Ltd. and dismissed all claims brought by the plaintiff, Tan Sri Halim Bin Saad.
• Cost Awards:
  • The plaintiff is required to pay RM200,000 in costs to the 1st, 2nd, 3rd, and 5th defendants, which includes Hoe Leong Corporation Ltd.
  • The plaintiff must also pay RM150,000 in costs to the 6th defendant.
  • The minor counterclaim brought by the 1st, 2nd, 3rd, and 5th defendants was dismissed, with RM20,000 in costs awarded to the plaintiff.

Implications for Shareholders and Investors

• Material Litigation Resolved: The dismissal of the plaintiff’s claim removes a major legal uncertainty that had been disclosed in the Company’s annual reports and prior announcements. This resolution could positively influence investor sentiment and reduce perceived litigation risk associated with Hoe Leong Corporation Ltd.
• Financial Impact: The cost awards in favour of the Company and other defendants may lead to modest recoveries, although the dismissal of the minor counterclaim means a small cost outflow (RM20,000) to the plaintiff.
• Potential Share Price Movement: The removal of this litigation overhang could result in upward movement in Hoe Leong’s share price, as investors may reassess the Company’s risk profile and future prospects more favourably.
• Investor Advisory: The Company advises shareholders and potential investors to carefully review this announcement, the FY2024 Annual Report, and any future updates before making any decisions regarding their securities. Investors are strongly encouraged to consult professional advisers if in doubt.

Next Steps and Ongoing Monitoring

The Company will continue to keep shareholders informed of any further developments related to this matter. Investors should remain vigilant and monitor official announcements for any new information that may affect the Company’s financial position or share value.

Conclusion

The favourable court ruling and dismissal of claims against Hoe Leong Corporation Ltd. represent a significant positive development for the Company. This outcome reduces litigation risk and may positively impact the Company’s reputation and share price. Investors should remain cautious but may view this as a de-risking event in the Company’s recent history.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult their stockbrokers, bank managers, solicitors, or other professional advisors before making any investment decisions. The Company’s future performance remains subject to various risks and uncertainties, including but not limited to ongoing legal, financial, and market developments.

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