1. Financial Fraud Sparks Legal Claims Zhejiang Founder Motor (002196) and related parties received a "Penalty Decision" from the Zhejiang Regulatory Bureau on February 5, 2024. The document revealed that the company had falsified annual reports for five consecutive years, with significant misrepresentations in certain years. Additionally, the company improperly accounted for "warranty expenses" and inflated goodwill related to Shanghai Haineng’s asset group.
Considering the prolonged financial misreporting—though the company proactively corrected the errors and cooperated with regulators—the Zhejiang Regulatory Bureau ordered corrective measures, issued a warning, and imposed a fine of 4 million yuan. Key personnel were also penalized. Subsequently, investor rights protection efforts began.
2. Eligibility Window Still Open Based on the China Securities Regulatory Commission’s findings and relevant securities laws, Zhejiang Founder Motor may be liable for civil damages due to fraudulent misrepresentation linked to investor losses. Affected investors can file lawsuits to seek compensation. With the penalty decision formalized, legal proceedings are expected to accelerate.
The statute of limitations remains open. Eligible investors—those who purchased shares between April 29, 2019, and June 26, 2023, and sold or held them after June 27, 2023, incurring losses—can still join the claim. Note that compensation claims depend on losses during the specified period, regardless of subsequent stock performance. Cases already submitted are under court review.
(Note: This information is provided for legal reference and does not constitute financial advice.)
Comments