Lotte Group founder and general chairman Shin Kyuk-ho filed a lawsuit against the CEOs of seven Lotte subsidiaries on charges of obstructing business, according to a law firm representing Shin on Monday.

The law firm DW Partners said it lodged a complaint against Lotte Shopping CEO Lee Won-joon and Lotte Corporation’s Noh Byung-yon for underreporting capital losses for their business in China, which disrupted the founder’s ability to make operational decisions.

In the complaint filed with the Seoul Central District Prosecutors’ Office, Shin also said the seven companies’ chiefs haven’t submitted operational reports and have refused to take orders from him since Oct. 20 to ruin the influence of the founder.

The Lotte subsidiaries subjected to the lawsuit also include Hotel Lotte, Lotte Confectionery, Lotte Aluminum, Lotte Engineering & Construction and Lotte Chilsung Beverage.

The move is the latest twist in the group’s family feud that also involves the founder’s two sons ― Shin Dong-joo and Shin Dong-bin ― which started in July when the former tried to have his younger brother fired from Korea’s largest retail giant.

In response, Lotte Group said the suit is groundless and aims to cause internal disorder.

“The CEOs have readily prepared business reports for the general chairman and they expressed their willingness (to report) several times,” a group official said.

(hnpark@heraldcorp.com)