Halo Microelectronics announced on September 17 that it recently received a Notice of Case Acceptance delivered by the Nanhai District People's Court of Foshan City, Guangdong Province. Nam David Ingyun has sued the company on the grounds of a labor dispute. The case has been filed and accepted by the court but has not yet been heard. Nam David Ingyun previously served as chief executive officer of a controlled subsidiary of Halo Microelectronics. He has filed four litigation claims, including requesting the company to exercise 3.2568 million stock options he intends to exercise at an exercise cost of 1.73 yuan per share and register them under his own name, and if registration cannot be completed, to compensate for the loss of being unable to exercise the options totaling 48.4406 million yuan, as well as requiring the company to provide business registration vouchers that comply with the Administrative Measures for Foreign Employees of Domestically Listed Companies Participating in Equity Incentives. Halo Microelectronics stated that between March and April 2025, the company discovered that Nam David Ingyun and others were suspected of engaging in unlawful acts such as misappropriating trade secrets, breaching fiduciary duties, and unfair competition during their employment at the company and its subsidiaries, and has decided to take judicial measures against them to pursue legal responsibility, including but not limited to filing relevant lawsuits and arbitrations in the United States and South Korea. The company has, in accordance with the relevant provisions of the 2021 stock option incentive plan, suspended the exercise of vested but unexercised options held by Nam David Ingyun and other involved incentive recipients, and has temporarily withheld cooperation with foreign exchange registration and other fund outflow procedures. Halo Microelectronics said it will actively respond to the lawsuit and present its defense, and that this litigation will not have a material adverse impact on the company's daily production and operations.
Halo Microelectronics Co. Ltd. AFormer subsidiary CEO sued Halo Microelectronics for 48.44 million yuan over stock options, and the company is pursuing legal action against him for alleged trade-secret misappropriation and unfair competition.
