South Korea’s top financial regulator said Samsung BioLogics had intentionally breached accounting rules ahead of its 2016 listing, leading to a suspension in trading of the biotech’s shares, a review of its listing status and the request that the CEO is fired.
After months of investigations, the Securities and Futures Commission found the contract drugmaker guilty of breaching accounting standards by unfairly inflating its profits before going public.
The action is a big blow to the CMO, especially after recently announced plans to invest $22 billion in the business and in other areas, such as artificial intelligence and 5G mobile technology.
According to Pulse analysts, the chances of delisting are low considering the CMO’s heavy presence in Korea’s stock market
The drugmaker denied any wrongdoing and said it would file an administrative lawsuit against the regulator.