Vibrant Group wins suit against Blackgold Australia

The group shall be paid damages and fees by Blackgold Australia’s ex-CEO and ex-chairman.

Vibrant Group has won the civil suit it filed against Peng Yuguo, former chief executive officer and Tong Chi Ho, former chairman of Blackgold Australia.

The civil suit was filed on 30 October 2020 after Blackgold International was found to have falsified accounts and inflated sales figures since it was acquired by Vibrant Group.

The High Court of the Republic of Singapore has ordered Peng and Tong to pay damages and fees to Vibrant Group.

This includes the acquisition price of $31.7m (A$37.6m), with simple interest of 5.33% starting from 13 July 2017; legal fees of $415,567 paid to Duane Morris & Selvam LLP, with simple interest of 5.33% accruing from 21 August 2019; and $48,317 (RMB259,207.70) paid to Zhong Hao Law Firm, with simple interest of 5.33% accruing from 15 January 2019.

The fees also include the cost of the special audit by Ernst & Young amounting to $1.48m (US$1.098m) with simple interest of 5.33% starting from 18 January 2019, and travel expenses worth $25,021 with simple interest of 5.33% starting from 28 September 2018.

The court further directed that unless the parties to the Suit can agree on costs, they are to file submissions on costs within 21 days of 27 January.