The ramifications of China’s power bank scandal, which prompted an emergency ban of substandard models on domestic flights, have extended to a mainland court, where troubled manufacturer Romoss Technology was slapped with a lawsuit for unpaid funds.
Shenzhen-based electronics contract manufacturer Zowee Technology filed the lawsuit at the People’s Court of Pengjiang district in Jiangmen, a city in southern Guangdong province, where it sought 136.26 million yuan (US$19 million) in damages against six defendants, including Romoss’ two subsidiaries in Shenzhen and Jiangmen, according to the plaintiff’s announcement on Tuesday.
In its court filing, Zowee said it also expected to recover costs related to finished goods plus interest, losses from orders in transit, an obsolete material fee, rework fees and compensation for labour losses. The company claimed that the four other defendants named in the lawsuit were jointly and severally liable for Romoss’ financial obligations.
Zowee said it was unable to assess the potential impact of the lawsuit on its current or future profit because of ongoing court proceedings.
The firm’s Shenzhen-listed shares closed 2.10 per cent lower to 9.79 yuan on Thursday.
The lawsuit marked another setback for Romoss, which sells its products in dozens of countries, after the firm suspended manufacturing for at least six months since July because its power banks were linked to multiple reports of explosions.
