Shares of Kuke Music (KUKE, Financial) fell nearly 16%, closing at $0.329. The sharp decline follows reports that the Chinese classical music platform is facing a lawsuit from Naxos Records. The two companies had an eight-year agreement signed in 2018, granting Kuke access to an extensive catalog of classical music recordings.
However, Naxos alleges that Kuke stopped making payments under the agreement at the end of 2021, resulting in nearly $2 million in unpaid fees. The legal action by Naxos has raised concerns among investors, leading to the significant drop in Kuke's stock price.
