The media company disclosed on Monday that the SEC ordered ABS-CBN, Big Dipper Digital Content & Design Inc., chair Martin “Mark” Lopez, president and CEO Carlo Katigbak and chief financial officer Ricardo Tan Jr. to file a verified answer within 30 days.
“The respondents will respond to the complaint through the proper legal channels in accordance with the applicable laws and rules, in due course,” ABS-CBN said in a stock exchange filing on Monday.
The complaint, filed on May 6, alleges violations of provisions of the Revised Corporation Code and Securities Regulation Code and prompted the regulator to form an ad hoc committee to investigate matters concerning the Lopez Group of Companies.
The filing stems from allegations by Piki Lopez, an ABS-CBN director, that management approved billions of pesos in compensation, advances and capital spending despite the company’s prolonged losses following the loss of its broadcast franchise in 2020.
The complaint also questions transactions involving subsidiary Big Dipper, which Piki Lopez claims were used to make ABS-CBN’s financial position appear stronger than it was.
Piki Lopez has separately asked the SEC to appoint an independent management committee to oversee ABS-CBN, safeguard its remaining assets and conduct a forensic audit of related-party transactions and financial reporting practices.
The dispute has become the latest flashpoint in a broader rift within the Lopez family, which has spilled into public battles over control and strategy across several group companies.
—Edited by Miguel R. Camus
