(Alliance News) - Clear leisure PLC said Monday Venice Court has set deadlines for submissions of further documents in relation to the legal action against former directors of Sipiem SpA and reconvened the parties for the second hearing on May 6.
The Italy-focused leisure, real estate and cryptocurrency investor said legal representatives of all parties involved appeared in the court, including representatives of two insurance companies which have provided professional indemnity cover to the majority of the eight defendants.
The company said the insurance documents indicate that professional insurance cover for this case is EUR1.0 million per year, per insurance company. Therefore, EUR2.0 million per year of cover has been provided, the company noted.
The company predicts that it will take between two to three years before any conclusion in this action will be reached.
Francesco Gardin, chief executive officer and executive chair, said: "The Sipiem trial has finally started, and we are very pleased that two of the largest European insurance groups are involved, having provided professional insurance cover to several of the defendants."
"We are now assessing options with our lawyers to increase further the legal pressure on the defendants," Gardin added.
The company purchased the legal action through its subsidiary Clear Leisure 2017 Ltd in September last year. The legal claim was in relation to Sipiem's liquidator accusing the company's previous executive team and audit committee of fraud and mismanagement.
Clear Leisure 2017 paid Sipiem EUR50,000 to acquire the legal action and will pay all legal costs. It will also receive 70% of any money recovered should the ruling go in favour of Clear Leisure 2017.
Clear leisure shares were trading 3.1% lower in London at 0.22 pence each on Monday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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