Update | Founder says current, future profits harmed by legal brawl with Zenith

Founder Securities admitted its current and future profits will possibly suffer from Beijing Zenith Holding’s 3 billion yuan lawsuit against it, the securities firm announced on the Shanghai Stock Exchange website on Wednesday.

Full details of the assets and transactions that lie at the heart of the 3 billion yuan legal dispute between state-backed Founder Securities and Beijing Zenith Holdings, a mainland property developer, were revealed today in a regulatory filing posted by Founder on the Shanghai Stock Exchange website today.

The Shanghai-listed firm admitted for the first time that it had received documents of Zenith’s lawsuit. According to the documents,

Zenith alleged it had incurred a total loss of 3 billion yuan from the Shanghai-listed firm, including at least one billion yuan of losses from Zenith’s sale of Minzu Securities to Founder Securities.

Top executives of Peking University’s Founder Group, the parent of Founder Securities which has been hit by allegations of corruption, have been taken away for questioning, Founder has confirmed.

Founder Group chairman Wei Xin, chief executive Li You and  president Yu Li were taken away by mainland authorities on Sunday “to assist with investigations”, the company said.