KUALA LUMPUR (Aug 28): Shares in property developer S P Setia Bhd (KL:SPSETIA) fell 15% to a five-month low on Wednesday, following news that it had initiated legal action against its former senior management and a former director of the group over alleged breaches of duties. The drop wiped out RM923 million in S P Setia's market value.

On Wednesday, the stock fell as much as 17.3% to touch an intraday low of RM1.05 before rising slightly to close at RM1.08, down 19 sen or 14.96% from the previous day. A total of 59.98 million shares changed hands. Its market capitalisation stood at RM5.25 billion. It was one of the top 10 biggest losers on Bursa Malaysia.

The sharp decline in its shares prompted Bursa to suspend the counter’s intraday short-selling (IDSS) for the rest of the day, after it dropped over 15% from Tuesday's closing price of RM1.27. IDSS of the counter will be reactivated on Thursday at 8.30am.

On Tuesday, S P Setia announced that it is suing former deputy president and chief operating officer Datuk Wong Tuck Wai, currently CEO of IJM Land Bhd; former executive vice-president Datuk Kow Choong Ming; and former president cum CEO and director Datuk Khor Chap Jen, among others, over alleged breaches of duties linked to the purchase of lands in Kota Kinabalu, Sabah and the sale of units under the group’s Aeropod project.