Investors affected by the alleged securities misrepresentation involving 37 Interactive Entertainment Network Technology Group Co., Ltd. (37 Interactive Entertainment) can now register their claims through the Sina Investor Rights Protection Platform.
### 1. Multiple Regulatory Violations Lead to Penalties A batch of investor lawsuits against 37 Interactive Entertainment for securities fraud, represented by lawyer Liu Peng’s team from Shanghai Huzi Law Firm, has recently been filed in court.
On October 31, 37 Interactive Entertainment disclosed that the company and related individuals received a "Prior Notice of Administrative Penalty" from the China Securities Regulatory Commission (CSRC). The investigation revealed four major violations in information disclosure, including false records of shareholder holdings in annual reports from 2014 to 2020 and failure to disclose multiple related-party transactions in a timely manner.
According to Liu Peng, investors who purchased shares between March 31, 2015, and June 27, 2023, and sold or held them after June 28, 2023, incurring losses, are eligible to file claims. The statute of limitations has not yet expired, allowing additional investors to join the lawsuit.
### 2. Key Violations Identified by CSRC The CSRC investigation outlined the following violations:
**False Disclosure of Shareholder Holdings** During the company’s 2014 asset restructuring and financing, shares subscribed by Wu Weidong, Wu Weihong, Wu Bin, and Ye Zhihua were actually held under the names of Li Weiwei and Zeng Kaitian. These shares were gradually sold from 2018 to September 2021, yet the undisclosed nominee arrangements were never reported in annual filings.
**Undisclosed Related-Party Transactions** In 2018, the acquisition of Jiangsu Jiguang’s equity constituted a related-party transaction, but it was omitted from the annual report. Similarly, the indirect acquisition of Guangzhou 37’s equity in 2020 was incorrectly labeled as "non-related-party" in temporary disclosures and excluded from the 2020 annual report.
More critically, from 2018 to 2021, the company failed to disclose related-party transactions with entities like Hainan Liyuan, totaling RMB 1.176 billion, none of which were reported in the respective annual reports as required by law.
(Note: This article is provided by Liu Peng, a securities litigation lawyer with 19 years of experience specializing in investor rights protection. Since 2006, Liu Peng has successfully represented over 30,000 investors in cases against more than 300 listed companies, achieving a 99.2% success rate.)
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