Legal proceedings regarding alleged securities misrepresentation by Wuliangye Yibin Co.,Ltd. (SHE: 000858) continue to advance. One of the plaintiff representatives, lawyer Li Jian from Zhejiang Yufeng Law Firm, stated that the Chengdu-Chongqing Financial Court officially accepted a case filed by shareholder Luo against the company on May 27. This week, the legal team has submitted filing materials on behalf of another group of shareholders.
Case Background
The case stems from an announcement titled "Announcement on Correction of Prior-Period Accounting Errors" released by the company on the evening of April 30, 2026. The announcement indicated that following a review of its 2025 business model and based on the principle of prudence, the company adjusted the accounting recognition for revenue from certain businesses conducted in 2025. This correction affected some items in the consolidated balance sheets and consolidated income statements for the first, second, and third quarters of 2025 that had been previously disclosed, though it did not impact the cash flow statement presentation. Specifically, the revenue for the first three quarters of 2025 was revised downward from approximately 60.945 billion yuan to 30.638 billion yuan, a reduction of about 50%. Net profit attributable to shareholders for the same period was revised down from about 21.511 billion yuan to 6.475 billion yuan, a decrease of roughly 70%.
Legal Basis for Claims
According to the Supreme People's Court's judicial interpretation on false statements, when investors suffer losses due to securities misrepresentation by listed companies, they can file lawsuits to claim compensation. The scope of claims can include losses from investment value differences, commissions, and stamp duty.
"The new judicial interpretation has clearly eliminated the prerequisite procedures. Based on preliminary evidence such as the accounting error correction announcement, affected shareholders can legally seek compensation. We are currently representing investors in filing lawsuits in batches," stated lawyer Li Jian. Under the judicial interpretation, shareholders who purchased Wuliangye stock between April 28, 2025, and April 30, 2026, and held the stock at the market close on April 30, 2026, may be eligible to claim compensation, subject to the court's final determination.
Required Documentation for Claims
Shareholders seeking to file claims need to provide documentation including a securities account information inquiry statement, a stock transaction statement (from April 1, 2025, to the present), and contact information.
Historical Context
It is noteworthy that, according to multiple media reports, the company received a "Administrative Penalty Decision" from the China Securities Regulatory Commission on May 28, 2011, for violations of information disclosure rules. Subsequently, investors began filing lawsuits against the company alleging securities misrepresentation. In October 2014, following court mediation, the company made a one-time payment of 13.44 million yuan to 141 plaintiffs. Lawyer Li Jian, who also represented plaintiffs in that case, noted that the 26 Wuliangye investors he represented at the time actually received compensation totaling 3.12 million yuan.
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