Comms' critical role in brand comeback as CDL father-son lawsuit dropped

City Developments Limited (CDL) executive chairman Kwek Leng Beng has dropped the lawsuit against his son and group CEO Sherman Kwek. In a regulatory filing on Wednesday (12 March), CDL said that the court proceedings have been settled and will be discontinued, reported CNA.

It added that the board will continue to focus on strengthening the company's business and will continue to act in accordance with good corporate governance and strive to maximise shareholder value. 

MARKETING-INTERACTIVE has reached out to CDL for a statement. 

Don't miss: From boardroom to courtroom: Does comms have a say in the CDL family feud? 

The elder Kwek first filed a lawsuit against his son on 25 February, alleging that Sherman Kwek tried to remove him from the role of executive chairman due to governance lapses and controversial board decisions. The legal action quickly became a media frenzy, receiving a total of 35,290 social engagement from 26 to 28 February, said media intelligence firm Truescope. 

Of the conversations held online, netizens expressed apprehension towards mixing family ties and businesses together. Some enquired about Sherman Kwek's ability to run the company too, added Truescope. Meanwhile, the public feud had also impacted sentiments of the brand with conversations being 3.4% positive and 40.6% negative, said CARMA. Additionally, shares of CDL have also fallen 6.5%, reported The Straits Times. 

Should CDL put out a statement soon?

In a previous article, PR and communications professionals said that PR teams should be working with lawyers to come up with a communications strategy to shape the narrative and maintain control as the lawsuit ensues. However, now that the feud has come to a supposed end, what then becomes the role of PR? 

Oliver Ellerton, founder and director of Ellerton & Co Public Relations said that the role now shifts from damage control to reputation recovery. He said that leadership has to own the narrative and not shy away from media and the general public. "Avoiding questions will only prolong the damage. Transparency, honesty and humility are essential in shaping the post-crisis narrative," explained Ellerton.

In addition, CDL must focus on rebuilding trust too. "The company must reinforce the message that, despite the legal battle, it has continued to operate, innovate and deliver value. This is the time to highlight business stability, showcase new initiatives and communicate growth plans. The goal is to demonstrate resilience and forward momentum," added Ellerton.

This can come in the form of media engagement such as scheduling interviews with key journalists to set the record straight, address misinformation and provide reassurances about the future.

Similarly, Edwin Yeo, general manager at Strategic Public Relations Group said that once a court case concludes, companies must act swiftly to manage any reputational fallouts. "Ideally, these decisions should be made with input from communications professionals, ensuring that legal outcomes are translated into a clear, strategic corporate narrative," said Yeo. 

"Senior PR leaders can help management anticipate and mitigate reputational risks, shaping a message that reassures stakeholders and reinforces CDL’s long-term vision. By proactively addressing concerns and communicating a clear path forward, the company can emerge from the dispute with its reputation strengthened rather than diminished," he added. 

Interestingly, Jose Raymond, managing director at SW Strategies said that the strategy will have to shift from one which is defensive, or offensive, to one which is focused on restoration and rebuilding on trust. 

"The aftermath of the matter focuses on restoring public trust and the brands' reputation by building a narrative that strays away from the case seamlessly and focusing on positive imaging," said Jose. 

CDL has yet to put out a public statement, according to checks by MARKETING-INTERACTIVE.

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