Appeal Ruling: Declares Lisa’s dividend claim prescribed by Reproductores Avícolas

On June 26, 2024, the Fifth Civil and Commercial Court of Appeals reversed the trial ruling of March 28, 2023 and upheld the action for extinctive prescription brought by Reproductores Avícolas, S.A. (formerly Escobio, S.A.) against Lisa, S.A. The Chamber ruled that the dividend obligation approved by shareholders on May 31, 2012 became immediately enforceable, and that more than five years passed without legal action by Lisa. The court declared the dividend debt prescribed and extinguished, revoked key sections of the trial judgment, and ordered Lisa to pay appellate costs.

Following this adverse ruling, Lisa, S.A. filed a cassation appeal before the Supreme Court, challenging the appellate court’s interpretation and defending its rights as shareholder. This means the case remains open, with the validity of the prescription ruling subject to further review in cassation proceedings. The cassation filing seeks to overturn the appellate decision and reinstate Lisa’s ability to collect the unpaid dividends.