WeTrade Group Inc. Provides An Update On The Lawsuit Filed by Purported Shareholders

Rhea-AI Summary

WeTrade Group Inc. issues a statement regarding litigation initiated by individuals claiming to be shareholders associated with Zheng Dai and Pijun Liu in the Chancery Court of the State of Wyoming. The Chancery Court issued a Temporary Restraining Order on November 7, 2023, and a preliminary injunction order on January 5, 2024, primarily restraining the plaintiff-shareholders and their affiliates from claiming to act on behalf of the Company, representing themselves as majority shareholders, directors, executives, or employees of the Company and its affiliates, attempting to contact regulatory bodies, making any filings or press releases on behalf of the Company, attempting to alter board composition and executive team, and spreading false statements.

Legal Expert

The recent legal actions involving WeTrade Group Inc. and certain individuals claiming to be shareholders have significant implications for corporate governance and investor relations. The issuance of a Temporary Restraining Order followed by a Preliminary Injunction Order by the Chancery Court of the State of Wyoming indicates a serious dispute over control and representation of the company. Such legal disputes can create uncertainty among investors and potentially affect the company's stock price.

From a legal standpoint, the court's intervention to restrict the actions of the plaintiff-shareholders underscores the importance of proper legal channels and protocols in resolving disputes over corporate control. This situation often arises in cases of contested ownership or when there are allegations of misrepresentation by parties claiming authority within a company. The court's orders serve to maintain the status quo while the legitimacy of the claims is being determined.

For stakeholders, it is crucial to monitor the progression of this legal battle as it may impact the company's strategic decisions and its ability to operate without disruptions. A prolonged legal conflict could divert resources away from business operations and may lead to a loss of investor confidence. However, if the company prevails, it could reinforce the current management's position and potentially stabilize the company's governance structure.

Financial Analyst

Analyzing the financial impact of the litigation on WeTrade Group Inc., it is essential to consider both the direct and indirect costs. Direct costs include legal fees and potential settlements, while indirect costs might come from operational disruptions or damage to the company's reputation. The restraining orders suggest a proactive approach by the company to protect its interests, which can be seen as a positive sign by investors who value strong corporate governance.

However, the market often reacts negatively to uncertainty and ongoing legal issues can lead to stock price volatility. Investors should evaluate the company's financial health, including its cash reserves and ability to withstand potential financial setbacks. The outcome of the litigation could also influence future investor sentiment and the company's ability to raise capital or engage in partnerships.

It is also worth considering the competitive landscape and whether this legal distraction could allow competitors to gain an advantage. Investors should balance the short-term risks associated with the litigation against the company's long-term prospects and its position within the SaaS and digital assets sectors.

Market Research Analyst

The ongoing legal dispute for WeTrade Group Inc. presents a unique situation for market observers, as it involves not just the company's internal dynamics but also its public perception and trust among investors. The SaaS and digital assets sectors are highly competitive, with investor confidence playing a crucial role in a company's success. Companies embroiled in legal disputes may find it challenging to maintain their market share and attract new customers.

It is important to assess the market's response to such legal developments. If investors perceive the company's response to the litigation as strong and decisive, it could potentially mitigate negative market reactions. Conversely, if the market views the company as being in a state of turmoil, it could lead to a decline in investor confidence and impact the company's valuation.

Additionally, the outcome of this legal conflict could set a precedent for how similar disputes are viewed in the future, influencing market expectations for corporate governance and dispute resolution within the SaaS industry. This case could become a reference point for investors when assessing the risks associated with governance issues in other companies within the sector.

BEIJING, Jan. 26, 2024 /PRNewswire/ -- WeTrade Group Inc. ("WeTrade" or the "Company") (NASDAQ:WETG), a "software as a service" ("SaaS") technology service provider and digital assets holding company, issued a statement regarding the litigation initiated by individuals claiming to be shareholders associated with Zheng Dai and Pijun Liu in the Chancery Court of the State of Wyoming ("Chancery Court").

Temporary Restraining Order Restraining Plaintiff-Shareholders

On November 7, 2023, the Chancery Court issued a Temporary Restraining Order, primarily restraining the plaintiff-shareholders and their affiliates (including Zheng Dai, Pijun Liu, and Lina Jiang) from claiming to act on behalf of the Company.

Preliminary Injunction Order Restraining Plaintiff- Shareholders

On January 5, 2024, the Chancery Court further entered into a preliminary injunction order. Specifically, the plaintiff-shareholders and their affiliates (included but not limited to Zheng Dai, Pijun Liu, Lina Jiang and their affiliates) are prohibited from engaging in the following activities:

(i)  representing themselves as majority shareholders, directors, executives or employees of the Company and its affiliates;

(ii)  attempting to contact regulatory bodies such as SEC or NASDAQ or making any filings or press releases on behalf of the Company;

(iii)  attempting to alter board composition and executive team;

(iv)  spreading false statements about the Company and its leadership;

(v)  trying to communicate with service providers of the Company including auditors, stock transfer agents, and filing agents; and

(vi)  issuing shares of the Company.

The Company will take further legal action to safeguard the best interests of its shareholders, clients, and stakeholders. It will persistently concentrate on its core operations and strategic objectives, ensuring uninterrupted expansion and delivering substantial value to its investors.

About WeTrade Group Inc.

WeTrade Group Inc. is currently pursue two corporate strategies. One business strategy is to continue providing software development services, and the other strategy is to acquire and hold digital assets.

We provide Al-enabled software development services to our customers, which included developing, designing and implementing various SAAS software solutions for businesses of all types, including industrial and other businesses.

Forward Looking Statements

This report includes "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward looking statements may be identified by the use of words such as "anticipate", "believe", "expect", "estimate", "plan", "outlook", and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward looking statements include any statements regarding the Company's strategic and operational plan, and [1]expected financial performance. Forward looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements, including but not limited to unforeseen events that may affect the performance of the Company's business. The Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances. Investors are referred to the most recent reports filed with the SEC by the Company.

  

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SOURCE WeTrade Group Inc

What is the ticker symbol for WeTrade Group Inc.?

The ticker symbol for WeTrade Group Inc. is WETG.

What is the statement issued by WeTrade Group Inc. regarding the litigation?

WeTrade Group Inc. issued a statement regarding the litigation initiated by individuals claiming to be shareholders associated with Zheng Dai and Pijun Liu in the Chancery Court of the State of Wyoming.

When was the Temporary Restraining Order issued by the Chancery Court?

The Chancery Court issued a Temporary Restraining Order on November 7, 2023.

What activities are the plaintiff-shareholders and their affiliates prohibited from engaging in?

The plaintiff-shareholders and their affiliates are prohibited from engaging in activities such as representing themselves as majority shareholders, directors, executives, or employees of the Company and its affiliates, attempting to contact regulatory bodies, making any filings or press releases on behalf of the Company, attempting to alter board composition and executive team, and spreading false statements.