Samsung Biologics filed an administrative lawsuit demanding that the Securities and Futures Commission (SFC) under the Financial Services Commission cancel its administrative action that Samsung Biologics committed accounting fraud. The company said on Nov. 28 that it filed an administrative lawsuit against the ruling of the commission to the Seoul Administrative Court on Nov. 27.
The Seoul Administrative Court distributed the case to the administration department No. 3. Some predict that the first trial will take place early next year, which usually takes about three months to the date of the first hearing.
Samsung Biologics changed the then-subsidiary Samsung Bioepis to a relevant company in 2015, and Samsung Biologics, which had been in deficit for four years since its establishment in 2011, turned into a surplus.
The commission issued administrative measures including a request to correct the financial statements and a recommendation to dismiss the CEO and his or her staff, calling it "intentional accounting fraud."
In response, Samsung Biologics said that it consulted three accounting firms, including Samil, Samjeong and Anjin, and it accepted opinions from financial authorities.
Samsung Biologics has also filed an application to suspend the execution until a ruling is made. "Manipulating data at a company that deals with life breaks down the company's credibility. We will get legitimacy of the accounting through the lawsuit," a Samsung Biologics official said.