A call for family peace quickly gave way to fresh legal hostilities after businessman Federico “Piki” Lopez filed indirect contempt complaints against his cousins on the same day he appealed for reconciliation during First Gen Corp.’s annual stockholders’ meeting.
The move triggered an immediate backlash from Piki’s cousins, led by Euguenio “Gabby” Lopez III, who holds a majority stake in the family-held Lopez Inc., deepening a corporate feud that has increasingly spilled into public view.
“What he says and what he does are two different things,” the majority said in a statement after receiving copies of the complaints. “This is Piki double speak. He talks peace and at the same time attacks.”
At the center of the dispute is First Gen’s hydropower transaction with Prime Infrastructure Capital Inc., a deal that has become a flashpoint in the battle over governance, disclosure, and control within the Lopez group.
The complaints arose from letters sent by members of the family majority, who control Lopez Inc., requesting documents related to the transaction. Piki argued that statements in those letters suggesting they could withhold approval of board and management actions unless the documents were produced may have exposed them to legal liability.
The legal action came just hours after Piki publicly expressed hope that long-simmering family tensions could be resolved.
Instead, the conflict appears to be intensifying.
The majority has repeatedly questioned the transaction’s terms, alleging the existence of “poison pill” provisions that could expose First Gen and its shareholders to penalties of as much as P24 billion should Piki and his appointees be removed from their positions.
Facing mounting pressure, Piki later disclosed selected details of the deal. Critics, however, note that the disclosure came roughly six months after concerns were first raised and only after the issue became public.
The controversy has also sharpened scrutiny of corporate disclosure practices. The family majority argues investors learned of the alleged provisions only after sustained public pressure, while the Philippine Stock Exchange has yet to rule on questions surrounding the delayed disclosure.
For investors, the latest exchange suggests the Lopez family’s boardroom battle is far from over.
