SEC summons ABS-CBN over Lopez dispute

ABS-CBN CORP. said it has received a summons from the Securities and Exchange Commission (SEC) over a complaint filed by businessman Federico R. Lopez, adding a regulatory dimension to an ongoing dispute within the Lopez Group.

In a regulatory filing on Monday, the listed media company said the complaint was filed against ABS-CBN, The Big Dipper Digital Content & Design, Inc., ABS-CBN Chairman Martin L. Lopez, President and Chief Executive Officer Carlo L. Katigbak, and Chief Finance Officer Ricardo B. Tan, Jr.

According to the filing, the complaint alleges violations of Sections 30 and 31 of the Revised Corporation Code, as well as Sections 22, 24, 26, and 68 of the Securities Regulation Code.

The SEC has directed the respondents to submit a verified answer within 30 days from receipt of the summons.

“An order has been issued by the SEC directing the respondents to file their verified answer within 30 days from receipt of the summons,” ABS-CBN said.

The complaint stems from allegations previously raised by Mr. Lopez involving a proposed capital infusion into ABS-CBN and alleged executive payouts, claims that the company has denied.

The SEC said it has formed a committee to investigate matters related to the Lopez Group dispute and that the respondents would address the allegations through the appropriate legal channels.

In March, the company said it was not a party to a dispute involving members of the Lopez family and described reports regarding a proposed P2-billion capital infusion and alleged executive payouts as baseless.

The controversy emerged after Mr. Lopez filed a lawsuit challenging his removal as president and chief executive officer of Lopez, Inc., the Lopez family’s holding company.

Over the weekend, however, the majority bloc of Lopez, Inc. said it had withdrawn a Feb. 27 board resolution that removed Mr. Lopez from his posts, potentially opening the door to renewed discussions among family members.

The bloc, which said it controls a 71% stake in Lopez, Inc., said the move would allow stakeholders to reassess their positions and explore options that would minimize harm to all parties while legal proceedings continue.

The group said discussions could proceed while a related case remains pending before the Court of Appeals, where a petition involving an injunction has been filed.

It added that it remains open to a ceasefire if there is a reasonable prospect of a fair compromise and access to information, but warned it is prepared to intensify efforts to protect its legal and financial interests should negotiations fail.

Shares of ABS-CBN rose four centavos, or 1.85%, to P2.20 apiece on Monday. — Ashley Erika O. Jose