There’s been a lot of media coverage of the Qihoo 360/Maso Capital lawsuit in the Cayman Islands recently. Forbes, SCMP, Asia Times, The Diplomat and others have all written about the high-profile court case, citing the judge’s ire with Qihoo over the destruction of evidence, lack of cooperation with investigators and claims about Zhou Hongyi’s not owning a mobile phone or computer.
With the next court hearing scheduled for Q1 of 2020, not a lot of time remains for both parties to resolve their conflict with mediation. If no advances are made on this front, both litigants will head towards a ‘winner takes all’ doomsday scenario. Experts do not expect things to go well for Qihoo after such precedents as Shanda Games; Shanda was forced to pay Maso Capital millions of dollars just last year.
Many questions remain open at this point; which way is this case going? Are Maso and Qihoo in talks to reach a mutually acceptable solution? If Qihoo decides to go continue to litigate, how will its share price be affected?
One article by popular markets news site equities.com claims Qihoo’s share price suffered greatly in the past year, falling almost 7%. For the sake of comparison, in July 2019 The Netflix Inc share price collapsed 12% following a lawsuit by Rosen Law Firm and The Schall Law Firm.
We will probably find out which way this goes soon. If Qihoo and Maso don’t get in a room soon, we’ll hear updates from the courtroom.