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Recently, the closely watched securities misrepresentation case filed by investors against East Group Co.,Ltd. (ST East Group, stock code: 300376) continues to advance. Lawyer Li Jian from Zhejiang Yufeng Law Firm, who has previously represented investors in successful claims against over 130 listed companies, stated that the claim period for the ST East Group case has not yet expired, and affected investors can still file for compensation.
Looking back at the case, on December 31, 2024, ST East Group announced receiving the "Administrative Penalty Decision" from the China Securities Regulatory Commission (CSRC). The announcement revealed that the CSRC found ST East Group had inflated operating revenue, operating costs, and total profit through fake trade businesses lacking commercial substance, financing procurement businesses, agency businesses, and data center integration businesses. This led to false records in the annual reports disclosed by ST East Group from 2017 to 2021. The CSRC decided to order ST East Group to make corrections, issue a warning, and impose a fine of 8 million yuan; relevant responsible persons were also given warnings and fined varying amounts.
On October 28, 2025, ST East Group's Q3 2025 report disclosed: As of the date of this report, the company had received materials for 868 securities misrepresentation liability dispute cases served by the Guangzhou Intermediate People's Court, with a total claimed amount of 28.6065 million yuan. Among these, for one case, the company received a first-instance judgment from the Guangzhou Intermediate Court on June 19, 2025: 1) The defendant, East Group, was ordered to compensate the plaintiff for losses of 33,134.22 yuan; 2) The defendant, He Simo, was ordered to bear joint liability for the plaintiff's economic losses; 3) The litigation costs of the case were to be borne by the two defendants. The company disagreed with the above judgment and has appealed to the Guangdong Provincial High Court. The aforementioned case is still in the second instance stage, while the remaining cases are still pending trial or in pre-litigation mediation. On September 22, 2025, the company received a "Civil Ruling" served by the Guangzhou Intermediate Court, which found that this case meets the conditions for applying the ordinary representative action procedure.
According to the new judicial interpretation on misrepresentation, if the rights and interests of investors are damaged due to securities misrepresentation acts by listed companies or actual controllers, the affected investors can file a lawsuit to claim compensation. The scope of compensation includes: investment balance differences, commission fees, and stamp duty losses.
"We have already submitted litigation materials on behalf of multiple batches of investors," said Lawyer Li Jian. According to the judicial interpretation, it is preliminarily determined that investors who suffered losses and can claim compensation are those who purchased ST East Group stock between March 15, 2018, and May 11, 2023, and continued to hold the stock at the market close on May 11, 2023. The final conditions for claiming compensation are subject to the court's determination.
Investors filing claims should provide a securities account information query slip, the original copy of the stock transaction statement (from March 1, 2018, to the present), and detailed contact information.
This article is contributed by Lawyer Li Jian of Zhejiang Yufeng Law Firm and does not represent the stance of Sina Finance. Lawyer Li Jian is a director of the Securities Law Research Society of the China Law Society and a securities dispute mediator for the Securities Association of China. He was awarded the title of "Outstanding Young Lawyer of Zhejiang Province" in 2009. From 2003 to the present, Lawyer Li Jian has represented investors in successful claims against over 130 listed companies including Wuliangye and DZH Inc., with significant results. Among these, the Xiangyuan Culture and Zhao Wei case was selected as one of the Top Ten Commercial Cases of the People's Courts in 2019, the Hangxiao Steel Structure case was selected as one of the "Top Ten Mediation Cases of National Courts" in 2012, and the Huifeng Share case was the first ordinary representative securities dispute case in Jiangsu Province. Lawyer Li Jian has been interviewed by over 100 news media outlets, including CCTV, Xinhua News Agency, Securities Times, Securities Daily, China Securities Journal, People's Court Daily, and CBN, more than a thousand times. Practicing Certificate Number: 13301200210145176.
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