The Straits Times on Saturday, January 7, 2012 reported that KXD Digital Entertainment said that it was under investigation under the Securities Futures Act. The company makes DVD players, speakers and MP3 players in China. It is under interim judicial Management. The judicial managers told the Singapore Exchange (SGX) that “the Commercial Affairs Department (CAD) of Singapore Police Force… has requested all documents in our possession in relation to the company”. There were no details about what the CAD is investigating.
SGX had previously reprimanded the company and the former chief executive Liu Fusheng for breaches of listing rules and failure of corporate governance. KXD is suing Mr Liu for $295 million for alleged breach of fiduciary duties. It also filed a police report of fraud and breach of listing rules.