John Lau takes legal action against Heath Zarin, EV Cornerstone
Cargo Services Far East Limited and CS International (Seafreight) Limited file lawsuit against EV Cargo Global Forwarding GmBH
HONG KONG, July 26, 2023 /PRNewswire/ -- Mr. John Lau Shek Yau ("John Lau or Mr. Lau"), founder of Cargo Services Group as well as JL Enterprises, began legal dispute and litigation proceedings against Heath Brian Zarin ("Heath Zarin") and EV Cornerstone Limited after the filing of a Writ of Summons with the High Court of Hong Kong on Monday,19 June.
The Writ of Summons outlined demands for Mr. Lau's partnership investment of US$45,500,000 in EmergeVest Logistics Fund LP ("ELF") to be returned, including all profits and proceeds to be returned to John Lau.
"I was the anchor investor in Heath Zarin's formation of EmergeVest in 2013. Without my help and financial backing, there would have been no EmergeVest today," stated Mr. Lau. "My investment played a critical role in the creation of EmergeVest and subsequently EV Cargo Holdings Limited ("EV Cargo"), which operates in the industry that I have had a career in for the past 30 years."
This development followed on the back of the 20 February 2023 divestiture announcement from the two entities that John Lau founded citing the intent to divest completely from EV Cargo, a logistics firm and a portfolio company of ELF, a fund managed by the private equity firm, EmergeVest.
The divestiture was a result of EV Cargo's business strategy to enter and operate in Greater China.
"It does not make any commercial sense for me to continue with our investment in EV Cargo whose strategy is to compete with our business in China," said Mr. Lau.
The deteriorated relationship between John Lau and his business (on the one hand) and Heath Zarin and his business (on the other hand) has culminated in the present litigation proceedings.
In addition, Cargo Services Group announced that its subsidiaries, Cargo Services Far East Limited and CS International (Seafreight) Limited, are suing EV Cargo Global Forwarding GmBH, part of EV Cargo and EmergeVest (a private equity firm), for unpaid invoices for rendered services.
The second Writ of Summons filed on Tuesday, 4 July 2023, with the High Court of Hong Kong, claimed to recover the outstanding payment and contractual interest for freight forwarding and shipping services amounting to approximately US$1.7 million (equivalent to approximately HK$13.2 million) and costs.
The Writ of Summons filed on 19 June 2023 is Case No. HCA 939/2023 and the second Writ of Summons filed on 4 July 2023 is Case No. HCA 1049/2023.
About John Lau Shek Yau:
John Lau Shek Yau is the founder of JL Enterprises Holdings Limited, a leading family office that invests in the logistics sector globally. He is also the founder of Cargo Services Group, a leading provider of supply chain total solutions services and is one of the top freight forwarders. Additionally, Mr. Lau has recently become the Executive Chairman of CN Logistics, a subsidiary of Cargo Services Group that is listed on the Hong Kong Stock Exchange.
About Cargo Services Group:
Cargo Services Group, founded by Mr. John Lau Shek Yau in 1989, is a leading provider of supply chain total solutions services and is one of the top freight forwarders. Cargo Services Group has a strong logistics network spread across Asia, Australia, Europe, the Indian subcontinent, the Middle East, South Africa, and the United States of America.
SOURCE JL Enterprises Holdings Limited
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