(Yicai Global) Dec. 15 -- Leshi Holding Beijing Co., the cash-strapped conglomerate known as LeEco, has found itself embroiled in yet another legal battle as senior executives at its sports unit fight off lawsuits for lending CNY4 billion (USD606 million) to the parent company.

A major LeSports shareholder filed a suit with the Beijing Municipal Court, Tencent Finance reported today. The case accuses Lei Zhenjian, LeSport's chief executive, and Gao Fei, chairman, of violating the firm's articles of association and lending to Leshi Holding without legal authorization.

The court is still considering the suit and will decide whether or not to accept it soon.

The loan led to huge losses at LeSports last year, the investor said, leading to poor cash flow, the inability to repay debts and a decline in the company's reputation. The plaintiff believes that the move violated shareholders' rights and interests, and requested compensation of CNY100 million.

The executives lent the funds to Leshi Holding between April and July last year so it could develop its smartphone and automotive businesses. Since then, it has repaid CNY1 billion worth of loans, but still has CNY2.5 billion in outstanding debts.

Lei once told Tencent Finance that the loan was strictly legal.