A Hong Kong appeals court has overturned the fraud conviction and prison sentence of pro-democracy media tycoon Jimmy Lai, ruling that a lower court judge had erred in finding him guilty. The court quashed the convictions and set aside the sentences for Lai and a fellow executive, stating that the reasoning used to establish liability was unsupportable.

Lai had previously been sentenced to five years and nine months in prison for breaching lease terms at the headquarters of his newspaper by allegedly concealing the operation of a private company on the premises. The appeals court found that the company did not owe a duty to disclose the breach in the manner argued by prosecutors.

Despite the legal victory, Lai will remain in prison serving a separate 20-year sentence on national security charges related to conspiracy to collude with foreign forces and publishing seditious materials. The case has drawn widespread international criticism and intensified scrutiny over the ongoing crackdown following the 2019 pro-democracy protests.

Lai’s family and supporters have expressed concern over his deteriorating health after years in solitary confinement, while rights groups and several democratic governments continue to call for his release.