Lawsuit Against Samsung Chairman
In February, Lee Kun-hee’s older brother filed the lawsuit and now he is joined by two other family members. The suit claims that when their father, founder of Samsung group, died, he left millions of shares in Samsung Life Insurance and preferred stock in Samsung Electronics, and cash in trust. Lee Kun-hee allegedly wrongfully transferred the stock and cash all to his name when he should have divided it amongst the heirs. The stock at issue is worth $877 million.
Questions surround the 25 years it took the older brother to bring this suit. The older brother says that he was trying to figure out what happened to the stock during that time period. A whistleblower eventually brought Kun-hee’s activities to light and Mr. Lee was prosecuted, and found guilty of tax evasion. He was forced to step down from his role as the Samsung Group chairman after this judgment, but he was later pardoned.
Lee Kun-hee refuses to settle in this case and will fight to South Korea’s highest court. The lesson of cases such as these is to plan your succession plan early. Choose those who will take over control with much care, and consult an estate planning attorney for proper drafting of a document to reflect those wishes.
See Danielle and Andy Mayoras, Samsung Billionaire Accused of Stealing Millions From Late Father’s Trust, Forbes, Apr. 20, 2012.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.