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.<\/p>\n
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.<\/p>\n
Chien and Chien-Hung remain in custody, while Huang was released on bail, prosecutors office spokesman Mou Hsin Huang said.<\/p>\n
The executives were also accused of making false commission fee claims totaling around T$10 million ($334,200). No further details about the allegations were immediately available.<\/p>\n
The arrests came in response to a complaint filed by HTC last month accusing the executives of leaking trade secrets.<\/p>\n
HTC declined to comment except to say the investigation had no impact on its operations. Chien and Chien-Hung could not be reached and Huang was not immediately available to comment.<\/p>\n
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.<\/p>\n
Shares of HTC lost 6.4 percent to T$146.5 at 0250 GMT, versus a 0.2 percent fall in the broader market.<\/p>\n
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.<\/p>\n
Its stock price is at 8-year lows, and it has warned it could make its first operating loss this quarter.<\/p>\n
($1 = 29.9245 Taiwan dollars)<\/p>\n
HTC reports record-low profit<\/a><\/strong><\/p>\n Nokia beats HTC in patent case<\/a><\/strong><\/p>\n