Cayman Court Rejects MILFAM Group Claims in Scully Royalty Dispute

The court’s decision effectively strikes down attempts by MILFAM to seize control, specifically labeling the group's past efforts to chair shareholders' meetings as legally ineffective. Justice officials noted that the MILFAM Group failed to disclose material conflicts of interest, specifically regarding long-standing financial ties between the group and its own board nominees. Consequently, Scully Royalty has labeled all prior news releases and SEC filings issued by the MILFAM Group since January 1, 2026, as misleading, inaccurate, and unauthorized.

The conflict has left a tangible mark on the company’s standing. The interference contributed to the resignation of auditor AOGB CPA Limited in March and forced a delay in filing the 2025 Annual Report on Form 20-F. This delinquency triggered an NYSE trading suspension on May 12, 2026. Scully Royalty is now working to engage a new auditor to clear the filing backlog and restore its exchange status. Meanwhile, the company is evaluating potential legal action against the MILFAM Group to recover damages caused by the unauthorized takeover attempt. Stakeholders who were contacted by the MILFAM Group are urged to reach out directly to the company.