China Fortune Land Development (CFLD) and Global Industrial Investment Limited (GIIL), leaders in industrial mixed-use projects in China, are suing 1955 Capital founder, Andrew Chung. GIIL claims that tech investor and entrepreneur, Andrew Chung altered contractual language in his favor in order to scheme GIIL out of 80 million dollars.
GIIL made an initial investment of 80 million dollars into both 1955 China and Capital Fund in 2015. GIIL states that they have ample evidence that shows Andrew Chung made changes to contracts and withheld the information from GIIL for almost one year after GIIL had made their investment.
1955 Capital was founded to address problems related to food, energy, agriculture, health, tech and more. 1955 Capital boasts to have the largest Venture Capital firm debut in the first quarter of 2016.
Andrew Chung and his wife, Coral Chung of San Francisco are both named as defendants in the lawsuit claiming that they intentionally made changes to a contract without giving GIIL an adequate amount of time to review the contract.
Last week a U.S. federal court judge in San Francisco ruled in favor of Chung. GIIL’s motion to return their initial investment of 80 million dollars was rejected. The arbitrator also awarded the San Francisco based venture capital firm over 9 million dollars in attorneys’ fees.
Putting aside the false accusations and acts of bad faith, Chung claimed that they will continue to work with portfolio companies and aim to continue to progress despite efforts by CFLD and GIIL to detour the VC’s operations.
In addition to the initial 80 million dollar investment and attorney’s fees, CFLD and GIIL are still contractually obligated to pay the remaining 120 million dollars as part of their original agreement. 1955 has filed counterclaims against CFLD and GIIL for bad faith conduct, violation of confidentiality agreements and damages, amongst other things.
Learn More: www.reuters.com/journalists/andrew-chung
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