Moonshot executives in talks to settle shareholder dispute ahead of IPO: report
Top executives at Chinese AI startup Moonshot are in talks to settle a legal dispute with a shareholder ahead of the company's planned Hong Kong listing, according to a media report.
Recurrent.ai, an AI software developer, and some of its investors have accused Alibaba-backed (BABA) Moonshot CEO Yang Zhilin and chief technology officer Zhang Yutao of making false representations to investors and enriching themselves at Recurrent's expense, according to a March 11 letter from Recurrent's lawyers seen by Reuters.
The dispute, which has been in arbitration in Hong Kong since 2024, centers on allegations that Yang and Zhang established Moonshot without Recurrent board approval. The executives co-founded Recurrent in 2016 and established Moonshot in 2023.
The dispute is not expected to jeopardize Moonshot's IPO plans, but an unresolved case could raise governance, ownership, and disclosure concerns for prospective investors, one of the people said.
Recurrent and its investors are also considering separate legal action in the Cayman Islands against Moonshot President Zhang Yutong, according to the letter
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