Chinese billionaire Wang Jianlin takes legal action against social media accounts
Chinese conglomerate, Dalian Wanda Group, which also owns AMC cinemas, has launched a lawsuit against several social media platforms in China, alleging they spread "malicious rumors" about Wang Jianlin.
Last week, social media reports circulated, claiming that Wang, Wanda's chairman, was stopped and prevented from leaving China at the airport. Wanda quickly dismissed these rumors, labeling them as "rumors with an ulterior motive." However, Wanda's Hong Kong-listed subsidiary's share price still experienced a 8% drop on that day.
Wanda's lawsuit comes amidst an increase in scrutiny of international business deals by Chinese authorities and their impact on top Chinese business leaders. The uncertainty around the sudden disappearance of prominent Chinese business figures without explanation causes concern among investors in China.
Wang used a July speech to refute earlier speculation about problems with his real estate business. Now, he's suing media organizations and social media users over the latest rumors.
Related: China's Crackdown on Billionaires and Wanda's Real Estate Challenges
Wanda announced on Wednesday that it had filed lawsuits against Asia News Weekly, New People Magazine, and other organizations, seeking a public apology and compensation of 5 million Yuan (around $760,000) for each case. According to Wanda, the groups used their WeChat and Weibo, the Chinese versions of Twitter, accounts to spread rumors of Wang's travel restrictions.
"We are currently communicating with our lawyers to decide on our next steps," Wang Pu, the editor-in-chief of Asia News Weekly, told CNN Business. New People Magazine did not immediately respond to a request for comment.
"The purpose of legal action is to defend our reputation and at the same time send a message of warning to the media that lack morality and basic ethical standards," Wanda explained in its statement.
However, it's not just media organizations that Wanda is targeting. The billionaire has also reportedly considered filing a defamation lawsuit against a US-based Chinese language news site, Boxun, with a demand for $2 million in damages.
Related: Wanda's London Real Estate Deal, Disney Rivalry, and China's Political Climate
Wang has found himself in a defensive position for months now.
In late August, Wanda withdrew from a multibillion-dollar London real estate deal. In July, the company sold multiple theme parks and hotels, over a year after Wang publicly claimed he could topple Disney in China (DIS).
The Chinese government announced last month it would restrict overseas investments in industries like real estate, hotels, entertainment, and sports teams – all significant areas for Wanda's business.
According to Forbes’ and Hurun's October annual wealth ranking, Wang Jianlin is China's wealthiest person with a net worth of over $32 billion. However, recent Bloomberg Billionaires Index estimates have pushed him down to the fourth spot, behind Jack Ma, "Pony" Ma Huateng, and immobilien magnate Hui Jiayin.
–By Nanlin Fang and Yuli Yang
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