A batch of investor compensation cases involving East Group Co.,Ltd. (300376), represented by securities claim lawyer Xu Feng from Shanghai Jiucheng Law Firm, have been partially settled, with compensation payments to be made. The legal team is simultaneously advancing the filing of subsequent cases and continues to accept claims from other investors.
Lawyer Xu Feng indicated that prior investor claims against East Group have already resulted in favorable court judgments. Investors who meet the eligibility criteria can still initiate claims.
On the evening of December 31, 2024, East Group announced receiving the "Administrative Penalty Decision" from the China Securities Regulatory Commission (CSRC). The investigation found the company committed the following illegal acts: First, East Group inflated operating revenue, operating costs, and total profit by engaging in fictitious trade businesses. Second, the company inflated operating revenue and operating costs through procurement agency businesses and agency businesses with financing characteristics. Third, it inflated operating revenue and operating costs by engaging in data center integration businesses with financing characteristics. In summary, by conducting these fake trade businesses, financing-related procurement agency businesses, agency businesses, and data center integration businesses that lacked commercial substance, East Group inflated its operating revenue, operating costs, and total profit. This led to false records in the annual reports disclosed by East Group from 2017 to 2021.
Xu Feng, lead lawyer at Shanghai Jiucheng Law Firm, which specializes in stock compensation legal affairs, believes that based on prior successful investor judgments, investors who purchased East Group stock between March 15, 2018, and May 12, 2023, and sold or held the stock after May 12, 2023, can still initiate claims.
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