A Chinese company facing adverse court rulings in a U.S. investor's lawsuit over its accounting has indicated it is open to discussing a settlement of the investor's $32.3 million judgment against the company......................
a law firm representing the company and Zhong Bo, its chief executive who isn't named in the suit, said in an Aug. 8 letter that "our client welcomes the idea of resolving the matter amicably." The law firm, King & Wood Mallesons, proposed in the letter that the two sides meet in China in September.
A settlement in the ZST case is far from certain. Mr. Deutsch's attorneys want ZST to post $2 million toward any potential settlement as a sign of good faith, while ZST is insisting the talks take place with no preconditions, according to the letters. The two sides previously had discussed a potential settlement, but those talks broke down in July, Mr. Seiden said in court documents.
Meanwhile, both sides continue to press their positions. Mr. Deutsch has filed a motion that would boost his potential recovery from ZST to $38.4 million, based on more-recent figures related to ZST's value than he had at the time of the initial judgment. Xue Na, ZST's corporate secretary, has asked a judge to throw out that initial judgment.
"We remain very hopeful, but are prepared to proceed aggressively," said David Graff, an attorney for Mr. Deutsch.