Shenzhen-based Coolpad has taken a legal action against three group firms of the Beijing-based company led by Lei Jun (Xiaomi Telecom Technology Co Ltd, Xiaomi Technology Co Ltd and Xiaomi Factory Co Ltd). The lawsuit is filed at the Shenzhen Municipal Intermediate People’s Court.
Xiaomi, who is applying for a Hong Kong stock listing with dual share classes, is blamed for copying Coolpad’s multi-sim design and other technology linked to UI. Due to this, Coolpad wants a ban on nearly 8 devices manufactured by Xiaomi and demands compensation for the losses incurred.
Since March 2017, Coolpad has suspended trading its shares. The unaudited results released last year show that Coolpad incurred a loss of $542 million in 2016. On the other hand, Xiaomi witnessed a three-fold increase in its operating profit last year when compared to 2016.
Xiaomi’s upcoming IPO is set to be one of the largest by a Chinese company after Alibaba (BABA). The company hopes to raise $10 billion in its public offering.