In the court of appeal of the state of California, a case was filed on May 1, 2024, with the case ID A168383. The lawsuit involves Yeung Chi Shing Holding (Delaware), Inc., et al., as plaintiffs and Yeung Bing Kwong Kenneth et al., as defendants. The case revolves around disputes among family members and related entities concerning a family-owned business in Hong Kong, China, and its subsidiaries in the United States.
The plaintiffs - Yeung Chi Shing Holding (Delaware) Inc. (YCSD), YCS Nevada, Inc. (YCS Nevada), and Hayward 1900, Inc. (Hayward 1900) - have brought various claims against the defendants for breach of fiduciary duty, aiding and abetting breach of fiduciary duty, and unjust enrichment. YCSD also raised a malicious prosecution claim stemming from a 2018 shareholder derivative suit filed in federal court.
The defendants include Yeung Bing Kwong Kenneth (Kenneth), Lee Chun Kit (Lee), Prestige Holdings, Ltd. (Prestige Holdings), and Commercial Triumph, Ltd. (Commercial Triumph). In December 2018, Kenneth filed a complaint in federal court against YCSD and others alleging an "earnings stripping and tax evasion scheme." He also claimed wrongful removal from YCSD’s board of directors.
The plaintiffs are seeking a reversal of judgment against breach of fiduciary duty, aiding and abetting breach of fiduciary duty, unjust enrichment as well as for malicious prosecution arising from the previous lawsuit filed by Kenneth in federal court.
Justices Brown, Streeter and Goldman all concur the plaintiffs (Shing Holding) appeal lacks evidence that the trial courts erred in their decisions and have affirmed all decisions in this appeal from the lower court.