Grigorishin Litigation. In February 2014, the Company was served in Cyprus with an interim order of the District Court of Nicosia (the “Order”). The Order was obtained by Konstantin Grigorishin and certain other plaintiffs against a number of defendants, including the Company, certain of its shareholders and directors, and Bank of New York (Nominees) Limited. Among other things, the Order froze property of most of the defendants, including the Company, but excluding Bank of New York (Nominees) Limited and two other defendants, for an amount up to EUR 400 million.
In April 2014, following prior written and oral submissions against the Order by the Company and several other defendants, the District Court of Nicosia discharged the Order in full, including in respect of the Company and its shareholders and directors. As far as the Company is aware, since then the plaintiffs have taken no substantive steps to proceed with their action against the Company or its directors.
The Company strongly rejects the plaintiffs’ claims and allegations against the Company as groundless. The Company will continue to defend vigorously its position in these pending legal proceedings.
Tsoy Litigation. In late June 2014, the Company’s shareholder, German Tsoy, and his holding company, Acura Global Limited (BVI), launched an action in the District Court of Nicosia against a number of defendants, including certain other shareholders and certain directors of the Company. The plaintiffs have initiated this litigation purportedly as a derivative action seeking damages “for the benefit of” of the Company “and/or” its majority shareholder, H.M.S. Technologies Limited. As such, no claims have been asserted directly against the Company by the plaintiffs.
The Company’s non-defendant directors, who made up the majority of the Company’s Board of Directors, carefully considered the plaintiffs’ claims and allegations, obtained legal advice from the Company’s lawyers, and unanimously concluded that the plaintiffs’ allegations were entirely meritless.
In June 2016, the plaintiffs completely and unreservedly withdrew their action and made a declaration that they have no claim against any of the defendants to the above action. This withdrawal was not a result of any settlement agreement, and the Company was not required to pay anything to the plaintiffs in connection with this withdrawal of claims.