Master Kong loses claim for compensation
Print Edition
INSTANT noodle manufacturer Master Kong has failed in its attempt to sue a media company for defamation over an article published last year claiming it used recycled cooking oil in its production process.
The company had sought 180 million yuan (US$28.4 million) in compensation in a suit filed against China Business Network Co, the owner of yicai.com — the website on which the report was published — and Hu Junhua, the journalist who wrote it, thepaper.cn reported yesterday.
The subsidiary of Taiwan-based Ting Hsin Group, claimed that the article, published on September 15, 2014, damaged its reputation and caused its parent company’s share price to plummet, the report said.
The Shanghai No. 2 Intermediate People’s Court, however, rejected the claim, saying the content of the report was “generally authentic” and was based on a statement issued earlier by the food company.
The court also supported Hu’s defense that he should not be listed as a defendant, as he was a staff reporter and simply doing his job.
In the same month as the article was published, Master Kong issued a statement in which it admitted that one of its noodle products was made with “poor quality edible oil.”
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