ABS-CBN Corp. moved to insulate itself from the legal rift within its controlling shareholder family, denying allegations of financial mismanagement that have surfaced in a Mandaluyong City courtroom.

In a statement on Saturday, March 28, the media group’s board of directors said that claims involving executive payouts and audit discrepancies were entirely without merit. The rebuttal comes as a power struggle intensifies at Lopez Inc., the private holding company that sits at the top of the clan’s corporate empire.

The conflict centers on a lawsuit filed by Federico “Piki” Lopez against several cousins, including ABS-CBN Chairman Martin “Mark” Lopez and former Chairman Eugenio “Gabby” Lopez III. The dispute was triggered by a contested Feb. 27 board meeting at Lopez Inc., where Piki Lopez was ousted as president.

Court filings indicated the fracture stems from a proposed ₱2 billion capital infusion intended for ABS-CBN, which has struggled to stabilize its finances since the government declined to renew its broadcast franchise in 2020.

In the complaint, Piki Lopez and his brother Benjamin alleged they resisted the ₱2 billion transfer due to what they described as unresolved audit findings at the media company. They raised concerns that the capital could be diverted to executive bonuses rather than used to shore up the balance sheet.

The ABS-CBN board, which includes both family members and independent directors, however, dismissed those assertions. The company stated that no such audit discrepancies exist and categorically denied that any funds were earmarked for executive payouts.

“Since losing its franchise in 2020, the company has faced challenges unlike any in its history. ABS-CBN has not stopped fighting to ensure its continued existence. It has not stopped serving. The last thing it needs is for its people to be misrepresented in a dispute it is not involved in,” the company said.

The legal battle has already prompted judicial intervention. A Mandaluyong City Regional Trial Court issued a preliminary injunction on March 26, effectively freezing the leadership changes at Lopez Inc.

The ruling reinstates Piki Lopez as president while the litigation proceeds, noting that provisional protection was necessary to preserve the plaintiff’s rights pending a full trial.

For ABS-CBN, the internal friction arrives at a delicate stage of its corporate pivot. Deprived of its free-to-air frequencies, the company has transitioned into a content-focused entity, relying on syndication and digital partnerships to mitigate losses.

The statement was signed by high-ranking executives, including Chief Executive Officer Carlo Katigbak, and independent directors such as Randolf David.