The Securities and Exchange Commission (SEC) has summoned ABS-CBN Corp., several of its top executives, and a subsidiary in connection with a complaint alleging violations of corporate and securities laws.
In a disclosure to the Philippine Stock Exchange on Monday, ABS-CBN said the respondents include the company, The Big Dipper Digital Content & Design Inc., Chairman Martin L. Lopez, President and CEO Carlo Katigbak, and Ricardo B. Tan Jr.
ABS-CBN said the complaint was filed on 6 May by Federico R. Lopez, represented by Gonzalo T. Ocampo, and was docketed as Case No. AHCL-001.
The complaint alleges violations of Sections 30 and 31 of the Revised Corporation Code, as well as Sections 22, 24, 26, and 68 of the Securities Regulation Code.
The SEC has ordered the respondents to file a verified answer within 30 days from receipt of the summons. It has also formed an “Ad Hoc Committee” to investigate matters concerning the Lopez Group of Companies.
The regulator’s actions formally initiate proceedings on the complaint and place the allegations under regulatory review. The summons, however, does not constitute a finding of wrongdoing against the respondents.
ABS-CBN said it “will respond to the Complaint through the proper legal channels in accordance with the applicable laws and rules, in due course.”
Over the weekend, the majority of the Lopez family criticized Piki Lopez for filing indirect contempt complaints against them on the same day he publicly expressed hope for peace within the family.
“What he says and what he does are two different things,” the majority said in a statement.
The dispute stems from the family’s requests for documents related to an energy acquisition, which they say contained provisions that could expose the company to penalties of up to P24 billion.