Investors who suffered losses can register for company rights protection at the investor rights protection platform.
I. Significant Progress in Case Development
Under capital market regulations, listed companies penalized for false statements are facing lawful compensation claims from investors. The latest developments in the Caissa Tosun Development Co.,Ltd. series of cases bring hope to affected shareholders.
Recently, investors won the first instance of the demonstrative case against Caissa Tosun Development for securities false statements. Following court proceedings, the company must bear compensation responsibility, while the company's then actual controller and chairman bear joint liability for compensation. This judgment not only provides strong legal support for investors but also demonstrates the capital market's commitment to rule of law. Currently, the first instance judgment has just been issued. If the company appeals, it will proceed to second instance.
Investors who purchased shares between August 28, 2020, and April 28, 2023, and sold after April 29, 2023, or still hold shares with losses can still participate. It's worth noting that courts follow the principle of "no action without complaint," so investors should actively exercise their rights rather than passively wait.
II. Information Disclosure Violations Already Penalized by Regulators
The investor lawsuits stemmed from a penalty the company received. In September 2024, the company was severely punished by the CSRC for illegal information disclosure violations, which subsequently initiated the rights protection process. On September 27, 2024, the CSRC imposed administrative penalties on the company and its related responsible persons. According to the Administrative Penalty Decision, the violations involved the company engaging in non-operational fund occupation with its controlling shareholder and related parties through various forms including fund lending, receivables collected by related parties, payment of expenses on behalf of related parties, entrusted loans, equity investments and prepayments without genuine commercial background, and factoring loans.
Furthermore, the company failed to disclose this information timely, and related periodic reports contained significant omissions. The CSRC imposed administrative penalties on the company and related responsible persons. These violations seriously breached the fairness and justice principles of capital markets and damaged the legitimate rights and interests of small and medium investors. Given the existing first instance victory judgment, qualifying investors can actively participate in rights protection. Capital market rules are being consolidated through successive rights protection cases, and the authenticity, accuracy, and completeness of information disclosure will always remain an inescapable responsibility for listed companies.
Comments