Banclogix sues HK broker CLSA Premium over wrongful termination of tech services agreement
CLSA Premium, formerly known as KVB Kunlun, is currently seeking legal advice in respect of the litigation.
Hong Kong-focused retail Forex broker CLSA Premium Ltd (HKG:6877), formerly known as KVB Kunlun, today confirmed that it is sued by Banclogix, which is displeased with CLSA’s decision to terminate the Renewed Information Technology Services Agreement with Banclogix.
Today, CLSA confirms that it has received a writ of summons together with an endorsement of claim dated May 6, 2020 issued in High Court of The Hong Kong Special Administrative Region by Banclogix System Co. Limited against CLSA. Banclogix makes several claims against CLSA. The plaintiff seeks a declaration that the broker has wrongfully repudiated the Renewed Information Technology Services Agreement and that Banclogix has been discharged from responsibilities under the Renewed Information Technology Services Agreement.
Banclogix also seeks the sum of HK$2,500,000 under clause 4.1 of the Renewed Information Technology Services Agreement; the sum of HK$1,500,00 under an invoice issued by the Defendant in March 2020, as well as further and/or as an alternatively, damages for wrongful repudiation and/or breaches of the Renewed Information Technology Services Agreement.
CLSA says it is currently seeking legal advice in respect of the litigation.
This is not the first time that Banclogix and CLSA clash in Court. The two companies have had disagreements over information concerning Mr Liu Stefan, a former CEO of KVB Kunlun, who left abruptly in July 2019. Back then, the brokerage started a review of its ex-CEO activities. KVB has established a sub-committee of the Board to review Mr. Liu’s performance during his time as chief executive officer and executive director of the company.
Then KVB clashed with Banclogix, which signed an information technology services agreement with the brokerage in December 2018. As part of the review of Liu’s performance, KVB Kunlun has made several attempts to access, on an urgent basis, data relating to the brokerage, but Banclogix has not provided such access.
