In Christine Ruth Ong Chai Hoon v Lam Kin Chung [2025] HKCFI 3857, Winnie Tsui J dismissed all of the claims brought by 11 plaintiffs who alleged a fraudulent scheme to solicit pre-IPO investments through fraudulent misrepresentations after a 27-day trial.
The judge found significant contradictions in the plaintiffs’ pleadings and testimony. In particular, earlier unamended versions of the pleadings contradicted subsequently amended pleas, and part of the plaintiffs’ evidence was found to be constructed retrospectively based on documents obtained from others rather than personal recollection. The court concluded that the alleged misrepresentations were not made, that the plaintiffs were aware of the risks involved, and that the investment structure was genuine.
Furthermore, key contemporaneous documents, including audited financial statements and valuation reports, were found to have been provided to the plaintiffs. These documents disclosed the company’s status as a start-up with minimal revenue and highlighted the risks involved. The court found it implausible that the defendants would simultaneously make fraudulent representations while providing documents that revealed the true financial state of the company.
The plaintiffs were ordered to bear the defendants’ costs on an indemnity basis, having regard to the seriousness of the unsubstantiated allegations, the egregiousness of retrospectively constructing evidence, and substantial delays in bringing the action to trial.
Read the judgment here at: https://legalref.judiciary.hk/lrs/common/ju/ju_frame.jsp?DIS=171891&currpage=T
Wong Yan Lung SC and Justin Lam, instructed by Haldanes, acted for the 1st and 4th Defendants.
