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HTC Holds Citi Responsible for Tumbling Stock Prices, Files Lawsuit

The world's 4th largest smartphone maker, HTC, has filed a complaint against the Taiwanese arm of Citigroup for wrongfully publishing a report on the company which caused a significant drop in its share price.

According to AFP (opens in new tab), the company has claimed in its lawsuit that a Citigroup employee published false information about the company in order to make a nice profit for himself.

Huang Mou-hsin, deputy chief prosecutor at the Taipei Prosecution Office, told Reuters that the lawsuit has been going on since August and confirmed that an investigation was underway. He failed to give additional information.

"HTC submitted its case in August and we have been in the process of handling it. HTC sued Citi Global Markets for violating stock transaction law," he revealed.

The company, which is battling Apple in US courts over alleged patent violations, saw its share price sour to a record Taiwanese $1,300 in April. But since then, the share price has fallen by around 68 per cent, highlighting the uncertainties surrounding the company.

HTC is fighting Samsung and other rivals for smartphone dominance and is facing a decisive legal battle with Apple in the United States.

Ravi Mandalia
Contributor

Ravi Mandalla was ITProPortal's Sub Editor (and a contributing writer) for two years from 2011. Based in Ahmedabad, India, Ravi is now the owner and founder of Parity Media Pvt. Ltd., a news and media company, which specializes in online publishing, technology news and analysis, reviews, web site traffic growth, web site UI. Ravi lists his specialist subjects as: Enterprise, IT, Technology, Gadgets, Business, High Net Worth Individuals, Online Publishing, Advertising, Marketing, Social Media, News, Reviews, Audio, Video, and Multi-Media. He has also previously worked as Dy. Manager - IT Security at (n)Code Solutions.