Can the appeal go straight to the end of the CTOS crisis?

CTOS Digital (CTOS, 5301, Main Board Technology Co., Ltd.) has appealed directly, and there is no need to pay any damages to the businesswoman! The stock price even surged 5%

The Court of Appeal overturned the High Court ruling, saying that CTOS Digital was wrong in ruling that it had no authority to determine users' credit ratings.

The Court of Appeals ruled on Tuesday that CTOS Digital, as a credit rating agency, did not defame, did not violate legal obligations.

As early as March of this year, the High Court ruled that CTOS Digital had no power to determine user credit ratings, and was awarded compensation to the merchant Suriati RM0.2 million in bounties and RM50,000 in court fees.

The ruling also triggered a dispute over the legality of CTOS digitally setting users' credit ratings, which in turn caused the stock to drop sharply by 27% in a single day, to its lowest level since listing in July 2021.

As the Appeals Court ruled that the CTOS figure appeal went straight and ruled that Suriyati would have to pay RM0.065 million in fees, the CTOS stock price also rose sharply. The final price on Tuesday was RM1.45, which is also the highest level of its stock price throughout the day, and has almost returned to where it was before the collapse.

In line with this announcement, CTOS Digital suspended trading from 4:24 p.m. this afternoon and resumed trading at 9 a.m. on Wednesday.

CTOS Digital, represented by lawyers Dato' Marie, Ashok Kandiah (Ashok Kandiah), and Hui Suk-yee (transliteration), confirmed the ruling to the media.

Marie said Tuesday's ruling is an important ruling for the credit rating industry.

“The High Court's erroneous decision will seriously affect the entire credit industry and raise doubts about the guidelines of the Credit Reporting Agency Act (CRAA) 2010.”