The legal team representing investors in the Derun Electronics securities compensation case has recently received notice that the court has formally accepted the case, marking the official start of legal proceedings.
Investors are reminded that the statute of limitations for filing claims in this case is set to expire on December 30, 2026, leaving only a six-month window. Eligible investors are advised to join the action promptly.
The lawsuit stems from a regulatory penalty. The Shenzhen Securities Regulatory Bureau issued an Administrative Penalty Decision. Between 2020 and 2022, due to major clients' operational difficulties preventing repayment, the company's actual controller used personal funds and external loans to provide financial support to these clients and suppliers. These entities then transferred the funds back to the company under the guise of "repaying historical debts."
This scheme cumulatively fabricated over 534 million yuan in repayments, leading to an understatement of credit impairment losses across multiple financial reporting periods.
These actions resulted in false records in the company's 2020 annual report, 2021 annual report, and 2022 interim report. The Shenzhen regulator imposed a fine of 7 million yuan on the company and a 12 million yuan fine on the actual controller, along with a five-year ban from the securities market.
Investors eligible to register for compensation are those who purchased the stock between August 27, 2020, and December 30, 2023, and subsequently sold at a loss or still held the shares after December 31, 2023.
Subsequently, on April 29, 2024, Derun Electronics issued an announcement regarding the correction of prior accounting errors and retrospective adjustments. The company stated that treating the repayments ultimately sourced from the actual controller as shareholder donations would more objectively and fairly reflect the purpose and commercial substance of the transactions, leading to the corrections and adjustments.
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