SINGAPORE — The long-running legal case involving Singapore water treatment firm Hyflux resumed in court on Tuesday, bringing the collapse of one of the city-state’s once-high-flying companies back into sharp focus.

The trial centres on allegations that former Hyflux executives made misleading statements to investors ahead of the company’s 2017 rights issue, which raised hundreds of millions of dollars. Prosecutors allege that the executives failed to disclose key financial information, contributing to significant investor losses when the business ultimately collapsed.

Hyflux, once celebrated as a homegrown success story and pioneer in renewable energy and water solutions, ran into trouble after delays and cost overruns at its flagship Tuaspring desalination plant project. The company struggled to meet debt obligations and was placed under judicial management in 2018.

Investors, including retail shareholders and institutional funds, lost millions of dollars when Hyflux’s share price plunged and ultimately became nearly worthless. The case has since become emblematic of broader questions around corporate governance, transparency and accountability in Singapore’s corporate sector.

At Tuesday’s hearing, the prosecution reviewed evidence outlining the company’s financial position in the years leading up to its collapse. Defence lawyers indicated they will challenge the assertions, arguing that executives acted in good faith and that the financial difficulties were a result of market conditions and project complexity.

Legal experts say the outcome of the case could have implications beyond Hyflux, potentially shaping how directors and officers of listed companies are held to account for disclosures to the investing public.

No final verdict is expected in the current hearing, which is slated to continue over several weeks.