San Francisco – Silicon Valley venture capital firm 1955 Capital and its solo managing partner Andrew Chung is facing another new legal challenge by its sole investor which seeks to enforce the investment terms in its deal with the Los Altos, Calif., venture investment company.
Global Industrial Investment Limited (GIIL), the sole investor in the two funds managed by Andrew Chung and 1955 Capital, filed the arbitration on October 29, 2019 to enforce the investment terms requiring Mr. Chung to make investments only in specified areas. The arbitration demand was filed with the International Centre of Dispute Resolution.
GIIL is a wholly-owned subsidiary of China Fortune Land Development, a publicly-traded real estate company and leading developer and operator of industrial mixed-use projects in China.
“None of the investments made by Mr. Chung is within the specific areas of our deal and he has flaunted his violation by continuing to target companies not within the investment mandate,” said Yan Zhang of Baker Botts LLP, counsel to GIIL.
This is the second arbitration between GIIL and 1955 Capital. While the first arbitration decision continues to be disputed and casts doubt over the validity of the investment agreements themselves, GIIL has brought this new arbitration because 1955 Capital’s continued investments outside its mandate will cause GIIL irreparable harm, Zhang said of the company’s arbitration demand.
Mr. Chung and 1955 Capital have made investments with GIIL’s funds in Crop Enhancement and Sustainable Bioproducts, two of the three disclosed investments made by Mr. Chung, which are in the agriculture technology area that is not within investment mandate.
Gridtential, the third company in which Mr. Chung has invested is in battery technology, also outside the investment mandate, according to GIIL’s arbitration claim.
Mr. Chung has promised GIIL to use 1955 Capital’s venture investments to attract US businesses and technologies to China and 1955 Capital is required to set up a rigorous process to evaluate startup companies’ potential relocation to China. “Right after receiving GIIL’s investment money, 1955 Capital promptly disregarded its duties and promises and has never attracted businesses to China.” Zhang stated, “It has never set up the proper process to evaluate companies, including the three investments he has made, and has never followed the investment mandate.”
In addition, both Andrew Chung and his wife Coral Chung, CEO of Senreve, a luxury goods purse company, have been sued for fraud in China by GIIL in connection with how the couple has made fraudulent promises in procuring GIIL’s interests in investing money into the funds to be managed by them, according to Zhang. Mrs. Chung worked for her husband at 1955 Capital, drawing a substantial salary while simultaneously launching her startup, Senreve, a luxury handbag company, facts which play a role in current and additional litigation against the couple.
GIIL also brought a California lawsuit on Nov. 18 in Santa Clara County Superior Court against Andrew Chung for violation of fiduciary duties. “There is ample evidence that Chung recklessly breached his fiduciary duty to GIIL by secretly changing the deal terms in a scheme to keep all the initial $80 million investment for himself,” said Zhang. That lawsuit seeks the return of the money, additional compensatory damages, punitive damages, and injunctive relief.
Additional action by GIIL against Mr. Chung, Mrs. Chung, and others is anticipated, Zhang added. For more information, visit Truth about 1955 Capital.
Oakland News Now Recent Posts
- Hanging out on Fruitvale and Foothill in Oakland Ca
- BART Old and New Trains Around Oakland and Berkeley
- Amtrak Capital Corridor #527 train at The Fruitvale Ave Crossing in Oakland CA
- Oakland Gang Wars – The Story Of Keyshia Cole Part 1 || Early Life
- The Oakland A’s Fail to Produce Runs, Manaea Struggles, and the Padres Defeat Them Soundly
- Bike Oakland: East Oakland loop to Coliseum BART
- San Diego Padres vs Oakland Athletics Highlights 8/03/21
- Carroll Fife: Oakland City Council
- New asphalt in the Oakland neighborhood
- Raiders Live: Carr, Drake and Edwards Presser – 8.4.21
- Today Is My 59th Birthday: Zennie Abraham’s Take On His Day
- Las Vegas Raiders: Another Executive And 3 Players Quit Raiders Organization By Joseph Armendariz
- Sony Xperia 1 IV (2022) Official Trailer
- Sony: PS5 Shortage will Continue into 2022
- Corgis Singing Happy Birthday To Zennie Abraham
- Las Vegas Raiders Third Raider Player To Retire – Sam Young Announces Retirement By Eric Pangilinan
- Oakland Launches City’s First Tiny Home Village On City-Owned Parcel At Lake Merritt
- Best Highlights and Sounds From the First Padded Practice of 2021 Training Camp | Las Vegas Raiders
- Yan Gomes after homering in his first Oakland A’s game
- Solo walk around the world famous Lake Merritt in Oakland Ca. My first ever visit