Billionaire Wang Escalates Family Feud Over Formosa Plastics Inheritance

Legal Battle Intensifies Over Trust Management

Walter Wang, a US-based billionaire and son of the late Taiwanese business magnate Y.C. Wang, has initiated legal proceedings in Washington D.C. against his half-siblings and cousins. The lawsuit centers on allegations of mismanagement of the New Mighty Trust, a complex heritage structure established by their father. Wang, who heads J.M. Eagle and has built a $2.1 billion fortune through plastic pipe manufacturing in California, is seeking court intervention to reform the trust's mandate.

Historical Context of Family Dispute

The current legal action represents the latest escalation in a family conflict that began in 2009 following Y.C. Wang's death at age 91 without leaving a will. The dispute involves substantial assets approaching $90 billion within one of Asia's largest petrochemical empires. The complexity of the situation is compounded by Y.C. Wang's family structure - he had 17 children from four different women, creating a intricate web of relationships and competing interests.

Allegations and Philanthropic Intentions

Walter Wang's lawsuit contends that the trust's original purpose - supporting family philanthropy, maintaining unity, and strengthening Formosa Plastics' competitiveness in the US market - has been derailed. Court documents reveal that philanthropic activities through the New Mighty Foundation effectively ceased after 2008. During Y.C. Wang's lifetime, the trust transferred approximately $232 million to the foundation and provided $48 million for research, healthcare, and cultural programs. However, post-2008, no further funding was allocated while legal expenses surged to $35 million.

Business Performance Amidst Family Feud

The ongoing family dispute has coincided with a decline in Formosa Plastics' business performance. The company's stock has plummeted by over half since 2021, with the group reporting a $40 million loss in 2024. Operating profits at Formosa USA have dramatically decreased from $1.4 billion in 2021 to just $157 million in 2024, significantly impacting the Wang family's wealth standing among Taiwan's richest families.

Future Prospects and Legal Implications

Despite the complex history of disputes spanning nearly two decades, Walter Wang maintains that his legal action is not driven by financial gain. As a cancer survivor and religious figure, he emphasizes his intention to ensure the trust's management aligns with his father's true intentions rather than dissolving it or seizing its assets. The legal proceedings in Washington D.C. follow a previous lawsuit filed in Bermuda in 2023 after multiple unsuccessful attempts to engage with the trust's temporary management.