CREALITY (ASX: 03388) has released an announcement from its Board of Directors addressing recent media reports circulating online. These reports concern a lawsuit filed against the company in a New York State court by a Europe-based 3D scanner manufacturer, referred to as the US dispute, alongside certain copyright and platform-related disputes in China involving MakerWorld and Bambu Lab, collectively termed as the Chinese dispute.
The Board noted allegations within the media reports suggesting the company failed to fully disclose these disputes in its prospectus or selectively disclosed related information. The Board wishes to clarify that, as detailed in the prospectus, the US dispute involves intellectual property infringement claims against one of the company's suppliers and the company itself, alleging that certain products infringe the plaintiff's patents and copyrights. On April 19, 2026, the court granted summary judgment of no literal infringement for one patent and denied the company's motion for summary judgment on all remaining patent infringement claims.
For further details, reference is made to the "Risk Factors" and "Business – Legal Proceedings and Compliance" sections of the prospectus. Based on information received by the company, as of the date of this announcement, the case remains pending for judgment on the plaintiff's remaining patent infringement claims. Considering the limited sales volume of the implicated products and the assessment from the company's litigation counsel, the lawsuit is not expected to have a material adverse impact on the company.
The Board further clarifies that the company has assessed the materiality of the Chinese dispute following due inquiry and consideration. As of the prospectus date, no court judgment or liability determination had been made against the company or other defendants. Considering the maximum potential claim amount and relevant measures taken by the company, its Chinese legal advisors believe this matter does not and will not have a material adverse effect on the group's business, operating results, or financial condition.
Based on the above, the company believes these disputes do not meet the applicable threshold for disclosure as material litigation in the prospectus and are not expected to have any material adverse impact on the group's business operations, financial position, or future development. Reference is also made to the risk factor disclosures in the prospectus regarding, among other things, intellectual property disputes, online platform operations, reputational risk, and potential negative publicity.
The company will continue to closely monitor the progress of these disputes. Should any significant developments occur that trigger the company's disclosure obligations under applicable laws, regulations, or listing rules, the company will issue further announcements and fulfill its information disclosure obligations in a timely manner according to relevant regulations.