KUALA LUMPUR (June 21): Scomi Engineering Bhd has filed a suit in the Kuala Lumpur High Court against Prasarana Malaysia Bhd and Rapid Rail Sdn Bhd seeking damages over certain statements made by the two companies, which were written and published in the media.

Ths was in relation to the safety concerns or risk associated with the design and/or manufacture of the four-car monorail trains by Scomi Engineering's wholly-owned subsidiary Scomi Transit Projects Sdn Bhd (STP) under the Kuala Lumpur Fleet Expansion Project that was awarded by Prasarana to STP on June 3, 2011
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In a filing with Bursa Malaysia today, Scomi Engineering said STP had on June 16 filed the action in the Court seeking, among others, an order directing Prasarana and/or Rapid Rail to remove and/or retract three media releases made on May 14, 2017, June 7, 2017 and June 12, 2017.

It also sought Prasarana and/or Rapid Rail to remove and/or retract various statements published in various online media on June 7 and 12, as well as to issue a correction and apology within seven days from the date of the Court’s judgment.

Scomi Engineering also said the Court has granted an injunction on an ad interim basis to restrain Prasarana and/or Rapid Rail from making statements concerning STP pending the disposal of STP’s application for an interim injunction, which is now fixed for hearing on July 27.

"The board has taken this course of action acting on the advice of its solicitors.

"The legal action and injunction application have become necessary after Prasarana and/or Rapid Rail issued the statements and failed to respond within the deadline given, to the notice of demand issued by STP’s solicitors on June 8 requiring the two companies to, among others, cease and desist from making further statements relating to the grounding of the four-car (monorail) trains and publish a suitable apology by media release," it added.

Scomi Engineering noted that the pending litigation does not affect its ongoing business performance.

Scomi Engineering shares closed down 0.5 sen or 1.92% at 25.5 sen today, with 126,200 shares done, bringing a market capitalisation of RM87.2 million.