HTC execs arrested over leaked secrets
HTC's stock price is at an eight-year low and has warned it could make its first operating loss this quarter.
TAIPEI - Three HTC Corp design executives were arrested on suspicion of leaking trade secrets, sending the Taiwanese smartphone maker's shares tumbling on Monday as its troubles deepened amid a wave of senior staff departures and disappointing sales.
Taipei prosecutors confirmed that HTC vice president of product design Thomas Chien, research and development director Wu Chien-Hung and senior manager of design and innovation Justin Huang were arrested on Friday.
Chien and Chien-Hung remain in custody, while Huang was released on bail, prosecutors office spokesman Mou Hsin Huang said.
The executives were also accused of making false commission fee claims totaling $334,200. No further details about the allegations were immediately available.
The arrests came in response to a complaint filed by HTC last month accusing the executives of leaking trade secrets.
HTC declined to comment except to say the investigation had no impact on its operations.
Media reports citing the police said the executives were planning to use stolen new interface technology to set up a new mobile design company aiming at Chinese vendors.
Rocked by internal feuding and executive exits, and positioned at the high end of a smartphone market that is close to saturation, HTC has seen its market share slump to below 5 percent from around a quarter five years ago.