Cambrian recently disclosed that it had been served with a 'Statement of Claim' filed by Liang Jun against the company. This legal document was delivered by the People's Court of Haidian District, Beijing. In his claim, Liang Jun is seeking judicial confirmation of his employment relationship with Cambrian, spanning from October 18, 2017, to February 10, 2022. Additionally, he is demanding that the company compensate him for losses incurred due to the forfeiture of equity incentives, amounting to a staggering 4.287 billion yuan. At present, the case has been formally accepted by the court but has not yet proceeded to the trial phase.

The backdrop to this dispute traces back to July 31, 2017, when Cambrian extended an 'Employment Intention Letter' to Liang Jun. Upon joining the company, Liang Jun was granted equity incentives as part of his compensation package. In July 2020, Cambrian successfully went public, and as a result, Liang Jun indirectly acquired shares in the company. However, Liang Jun alleges that on February 10, 2022, he was compelled to terminate his employment due to the company's breach of contract. Furthermore, he contends that although his shares became eligible for sale on January 2, 2024, the company failed to cooperate with his efforts to reduce his shareholding.

The equity incentives in question are tied to the capital contributions made by two employee stock ownership platforms. According to the terms outlined in the 'Stock Ownership Plan,' an employee's resignation triggers repurchase conditions for their shares. It is worth noting that Liang Jun has previously initiated two lawsuits concerning related issues, both of which he ultimately lost.

In March 2022, Liang Jun tendered his resignation, citing disagreements with the company. This development had a notable impact on Cambrian's research and development management. The very next day, the company's stock price experienced a sharp decline.