Singapore-based Olam International has dropped legal action against investment firm Muddy Waters and its founder Carson Block over statements questioning the commodity trader’s accounting methods.
In a statement today (5 April), the company said it had decided to discontinue the pending legal action against Muddy Waters and Carson Block related to comments made at a London investment conference in November last year.
Olam had filed the lawsuit in the High Court of Singapore in November as a result of “negative statements” made by Block.
The dispute between Olam and Block began when a Muddy Waters director accused the Singapore-based company of booking profits on transactions before it is clear how they would work out over time, according to Bloomberg.
A Notice of Discontinuance, however, was filed today in the High Court of Singapore by Olam.
The company said: “While Olam has been able to serve notice on Muddy Waters, it has been unsuccessful in serving Carson Block despite its best efforts. In addition, after several months of investigation, no assets of consequence have been identified for either party against which claims can be made.”
Olam said it decided not to move forward with the legal action after considering feedback from several of its shareholders.
“Olam has decided it should now move forward and focus resources and management attention to deliver value for its continuing shareholders and other stakeholders,” it said.
Block could not be reached for comment.