(Bloomberg) — Thailand’s Constitutional Court dismissed a complaint against former premier Thaksin Shinawatra and his family-backed ruling party, a major reprieve for his daughter’s less than three-month old government. The nation’s main stock index advanced.
Most Read from Bloomberg
The court will not proceed with a petition filed by an activist lawyer because there wasn’t enough evidence to back up his allegations, it said in a statement Friday. It was the first of many petitions related to Thaksin’s alleged influence on the ruling party or the government to reach the top court.
Theerayuth Suwankaesorn’s petition urged the court to order Thaksin and the ruling Pheu Thai Party of Prime Minister Paetongtarn Shinawatra to cease all alleged attempts to overthrow the democratic regime of government with the king as head of state.
For now, the dismissal eases some risks of political uncertainty and investor angst in a country still recovering from the same court’s shock August order to remove then prime minister Srettha Thavisin in an ethics violation case. The court had also disbanded Thailand’s largest opposition party Move Forward over its campaign to amend a law prohibiting defamation of the royal family, as a result of Theerayuth’s earlier petition.
READ: Complaints Against New Thai PM Pile Up as Old Guard Wields Power
Thailand’s benchmark stock index rose as much as 0.7% after the court statement, while the baht pared losses against the US dollar.
A two-time former prime minister, Thaksin is not a member of Pheu Thai party though he’s considered its de facto leader. Thailand’s most popular politician, Thaksin is widely seen as wielding significant influence in setting the direction for his 38-year-old daughter’s government.
On Thursday, Paetongtarn assured investors that Thailand will remain politically stable and her government would complete its term in 2027. Thaksin has been dismissive about the legal challenges as well, saying they were nothing more than noise.
READ: Thailand Seeks Foreign Investment as PM Plans for Trump Era
Since taking power in September, Paetongtarn’s new government has already come under legal scrutiny over her father’s alleged control over the Pheu Thai-led government. Separately, the Election Commission has launched a probe into Thaksin’s alleged influence on the party, based on a number of petitions filed by activists and Thaksin’s opponents.