The long - standing "old account" between Cross - border Pass and Patuosen has finally come to a result recently.

On May 16th, Cross - border Pass Treasure E - commerce Co., Ltd. issued a major litigation progress announcement, stating that in the two tort liability disputes between the company and former senior executives of Patuosen, the appeals were rejected by Taiyuan Intermediate People's Court in the second instance and the original judgments were upheld.

According to the announcement, the total amount involved in the two cases is about 164 million yuan, and the core disputes are all related to the equity transaction of Patuosen in 2021.

At that time, Cross - border Pass sold 100% equity of Shenzhen Qianhai Patuosen Network Technology Co., Ltd. According to the assessment report, Patuosen was valued at about 2.018 billion yuan at that time, with an appreciation rate of nearly 200%.

However, after the transaction was completed, Cross - border Pass found that in October and December 2020 before the equity transfer, the then chairman and general manager of Patuosen and others had paid about 47.05 million Hong Kong dollars (about 39.98 million yuan) to individuals through subsidiaries.

Cross - border Pass believes that this payment of funds was not carried out through normal internal procedures and led to a reduction in Patuosen's owners' equity, which further affected the overall valuation of the company.

The announcement shows that Cross - border Pass claims that the above - mentioned behaviors caused the value of all Patuosen's equity to be "falsely reduced" by about 119 million yuan, so it filed a claim for compensation against the relevant responsible persons. The claim amount for a single case is about 82.24 million yuan, and the total amount for the two cases is about 164 million yuan.

However, judging from the final judgment results, the court did not fully support all the demands of Cross - border Pass, but the core compensation liability was recognized.

In one case, Deng Shaowei was ordered to compensate Cross - border Pass 42 million yuan, and Liu Yongcheng bore joint and several liability; in the other case, Liu Yongcheng compensated 42 million yuan, and Deng Shaowei bore joint and several liability. The second - instance courts finally upheld the original judgments.

It should be noted that Patuosen was once one of Cross - border Pass's core cross - border e - commerce assets and was also a well - known domestic cross - border big seller in the early days.

Over the past few years, Cross - border Pass has been continuously mired in declining performance, debt pressure, and multiple litigation storms. This final judgment result also means that part of the disputes around Patuosen's equity transaction between the two parties has finally come to an end temporarily.

In addition to this case, Cross - border Pass also disclosed in the announcement that at present, there are 12 cases of the company and its subordinate companies entering the enforcement procedure, with the amount involved exceeding 440 million yuan; in addition, there are also cases that have been mediated, completed trial, and are still under trial.

Regarding how much impact these litigations will bring, Cross - border Pass said that it is currently unable to determine the specific impact on the company's current profit or subsequent profits, and will make corresponding accounting treatments according to the execution of the cases in the future.

(Source: Hugo Cross - border Editorial Department)

Seller's Home Review

Editor's review: This case warns sellers that they need to attach great importance to non - compete restrictions and trade secret compliance, and avoid legal risks caused by the resignation of core teams or senior executives. It is recommended to immediately review and improve internal confidentiality and non - compete agreements to ensure clear rights and responsibilities at key positions and prevent problems before they occur.

Source: Hugo Cross - border
Original link: https://www.cifnews.com/article/186248