Reported by the Japan Economic News, Hong Kong investment fund Oasis Management filed a lawsuit at the end of last month regarding the health hazards caused by Kobayashi Pharmaceutical's red yeast rice ingredient health products, demanding compensation of over 10 billion yen (0.52 billion Hong Kong dollars) from 7 former and current top executives of Kobayashi Pharmaceutical.

The defendants include all directors at the time of the exposure of the issue, including former chairman Kazuya Kobayashi, former president Shohei Kobayashi, current president Satoshi Yamane, Honorary Professor at Hitotsubashi University Kuniyuki Ito, and 4 external directors including Kaori Sasaki, president of Ewoman company. Kobayashi Pharmaceutical recorded special losses of over 10 billion yen in the first three quarters of this year due to the red yeast rice issue.

Oasis Management holds a 7.54% stake in Kobayashi Pharmaceutical, making it the fourth largest shareholder based on the shareholder structure as of the end of June. According to reports, if the directors do not file a lawsuit on behalf of the company, Oasis Management can bring a shareholder representative lawsuit at the end of January next year.