Forbes Media family sues Hong Kong investors over stake sale

In a lawsuit, the family has alleged Integrated Whale Media Investments (IWM) breached its purchase agreement and failed to make payments on time.

IWM borrowed money from Forbes to finance the deal, the family added.

However, IWM has rejected the allegations and told the BBC they are "completely without merit".

 

The Hong Kong-based investment holding company is registered in the British Virgin Islands, while the Forbes family's lawsuit has been filed the US state of Delaware.

Forbes Media publishes Forbes magazine and reaches about 80 million people a month through its various outlets in print, digital and television. 

Forbes Media was owned by the Forbes family for 97 years until the family sold a controlling stake to IWM for an undisclosed amount in July 2014. It had been looking for a buyer since November 2013.

But the Forbes family claims the investment firm has "wasted" corporate assets and abused its position as the controlling shareholder of Forbes Media.

"From the outset of the supposed partnership, Integrated Whale and its principals have steadfastly refused to pay what they clearly owe, and instead have made a series of baseless - and often patently false - excuses and pretexts for their refusal to honour their basic contractual commitments," the family said in the lawsuit filed last week.

IWM has said the lawsuit is a dispute between shareholders and does not have any impact on the media firm's daily operations and future growth.

"Forbes Media is managed by a team of media professionals, and IWM has built a good and trusted working relationship with this management team."