Quantum Blockchain Technologies PLC (LON:QBT) has updated investors on the current status of Clear Leisure 2017’s (CL17’s) legal action against Sipiem SpA’s previous board and internal audit committee.
The AIM-listed firm said the hearing for the case at the Venice Court on May 27 has been temporarily suspended as a result of the verbal notification to the Judge, at the opening of the hearing, that one of the defendants has passed away.
CL17, as claimant, is now required as per the Italian code of civil procedure to take a further procedural step, notifying the heirs of the late defendant about the claim, as well as re-notifying all other defendants, which will result in a few months’ delay of the hearing planned to take place yesterday, Quantum said.
However, the group said that the independent expert has valued the economic value of the possible damages suffered by Sipiem at an amount of up to €7.8mln, subject to the Judge ruling that the conduct of Sipiem’s former board and internal audit committee was unlawful.
“Although the independent valuation of the possible damages (of an amount up to €7.8mln) is lower than the company’s valuation of €10.8mln, the company still regards this as a significant result for shareholders, as it confirms the vast majority of the company’s estimate of damages. Whilst the delay is disappointing, the company acknowledges the relevance of this key procedural step and maintains a positive outlook on the result of the litigation”, Quantum said.
The firm also clarified the next procedural steps of the civil trial, which will include CL17 filing a request with the court for the restart of the legal proceedings, followed by the court agreeing to a first hearing to restart the proceedings and allow the heirs of the defendant to agree to an appearance in court. At that hearing, the Court will also agree to a second and final hearing.
At the final hearing, the company said the parties shall define their claims and the court shall assign terms for the conclusive briefs, following this, each party’s legal counsel will have 80 days to file their conclusive briefs to the Judge, who is expected to make a ruling with a 60-90 day time frame following the conclusion of the conclusive briefs period.