Capital World Limited Issues Interim Material Update: Legal Proceedings and Group Status

Key Highlights from the Latest Company Update

• Major Legal Claims Update:
  The Group provided updates on several ongoing legal cases, including significant developments in the high-profile claims by Teh Swee Neo, Lee Yong Hen, and 97 other purchasers (collectively, the “99 Plaintiffs”).
• Positive Court of Appeal Outcome:
  The Court of Appeal on 7 January 2025 overturned a High Court judgment that had previously found Capital City Property Sdn Bhd (CCPSB), a subsidiary of Capital World Limited, and CCRM Management Sdn Bhd (CCRM) jointly and severally liable for claims amounting to approximately RM10 million. This effectively absolves both entities of liability at this stage.
• Potential for Further Legal Risk:
  The 99 Plaintiffs have filed an appeal to the Federal Court. The case management for this substantive appeal is scheduled for 26 January 2026. Investors should note that the legal outcome remains uncertain and could still impact the Group’s financials and reputation.
• Pung It Teong and Tan Yee Ting Case:
  Another group of purchasers sought a refund totaling RM435,756. The Sessions Court dismissed the claim on 29 May 2025 and awarded RM9,000 in costs to CCPSB. However, the plaintiffs have filed a Notice of Appeal, with the next hearing scheduled for 28 April 2026. This represents a continued, though currently favorable, legal position for the Group.
• No Updates on Other Legal Matters:
  No material developments have been reported for other pending cases involving Anna Ling and 124 other purchasers, Chong Kim Chuan, Pey Boon Siong and 19 others, Saravaneshwari A/P Subramaniam, and Nandagopalan A/L S.M. Samy.
• Corporate Status and Investigations:
  There are no new updates regarding the Group’s assistance in the investigation by the Malaysian Anti-Corruption Commission (MACC), the sale of development rights and beneficial ownership of the five towers in the Capital City Project, or the progress on the Sale and Purchase Agreement with MK Mustafa.

Price-Sensitive and Shareholder-Relevant Information

• Absolution of Liability in RM10 Million Claim:
  The setting aside of the High Court’s RM10 million liability judgment is a major development that may positively affect investor sentiment and the Group’s balance sheet, at least temporarily. However, the ongoing Federal Court appeal means the risk is not fully eliminated.
• Continued Litigation and Potential Financial Impact:
  The appeals in both the 99 Plaintiffs and the Pung It Teong and Tan Yee Ting cases mean that significant legal risk remains. Adverse outcomes could lead to substantial financial liabilities for the Group.
• Regulatory and Transactional Uncertainties:
  Pending investigations and lack of progress in major asset sales or transactions (including with MK Mustafa) could also affect the Group’s financial health and share value, depending on eventual outcomes.

Detailed Developments and Timeline

1. Teh Swee Neo, Lee Yong Hen, and 97 Other Purchasers

• High Court previously found CCPSB and CCRM liable for RM10 million.
• Court of Appeal, on 7 January 2025, approved the appeal from CCPSB and CCRM, setting aside the High Court judgment and absolving both parties of liability.
• The 99 Plaintiffs have appealed to the Federal Court, with the first case management scheduled for 26 January 2026.

2. Pung It Teong and Tan Yee Ting Case

• Purchasers sought a refund and damages totaling RM435,756.
• Sessions Court dismissed their claim and awarded RM9,000 in costs to CCPSB.
• Purchasers have filed an appeal, with the next hearing set for 28 April 2026.

3. Other Legal and Corporate Matters

• No updates on other legal cases involving multiple other purchasers.
• No developments in ongoing MACC investigations or in the sale and development of the Group’s major property assets.
• No new information on the completion of the Sale and Purchase Agreement with MK Mustafa.

Guidance for Shareholders

Shareholders are advised to monitor further announcements closely as the outcome of these legal proceedings, as well as the status of regulatory investigations and major transactions, could materially affect the Company’s financial position and the value of its shares. It is recommended that shareholders seek professional advice if in doubt about their investment decisions.

Disclaimer

This article is provided for informational purposes only and does not constitute investment advice. Investors should consult their own financial, legal, and professional advisors before making any investment decisions based on this report. The information herein is based on the latest company announcement and may be subject to change as new developments arise.

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