Earlier reports suggested that former Sibneft shareholders - Nimegan Trading Limited and Gemini Holding Limited - filed a lawsuit against the federal commission for the Russian securities market (now transformed into the federal service for Russian financial markets) and Yukos in January 2004. In their opinion, the fifth additional emission of Yukos shares of July 22, 2003 violated the law on the securities market.
The plaintiffs, in particular, claimed that the emission did not provide all the necessary documents and violated relevant procedural time regulations.
The trial of the arbitration court found the registration of this emission illegal and the issued shares invalid, thereby sustaining the claim. The appeal court upheld this decision. However, Yukos appealed against this ruling in a cassation.
In 2003, the merger of Yukos and Sibneft secured 92% of Sibneft shares for Yukos - 20% of Sibneft stakes were procured from the former owners for $3 billion, another 72% were exchanged for Yukos shares. Then, 57.5% of Sibneft shares were exchanged for Yukos stakes of the new emission. The legality of this move is now being reviewed.
