Investors who suffered losses can register their claims through the Sina investor rights protection platform.
On March 12, 2026, attorneys representing investors in a securities fraud case against East Group Co.,Ltd. submitted additional claims to the Guangzhou Intermediate People's Court. The case involves investor losses due to misrepresentation.
Legal counsel indicated that the investor claim case against East Group Co.,Ltd. has already achieved favorable court rulings, with some investors having received compensation payments. A parallel representative action is also advancing, which has resulted in a statutory extension of the litigation period for eligible investors to file claims. The legal team continues to process subsequent case filings and is accepting new clients for claim representation.
On the evening of December 31, 2024, East Group Co.,Ltd. announced it had received an "Administrative Penalty Decision" from the China Securities Regulatory Commission (CSRC). The investigation established the following violations: 1. The company inflated revenue, operating costs, and total profit through fictitious trade activities. 2. It inflated revenue and operating costs through procurement agency and other agency businesses with financing characteristics. 3. Revenue and operating costs were inflated through data center integration businesses that contained financing elements.
In summary, East Group Co.,Ltd. inflated revenue, operating costs, and total profit via the aforementioned sham trade activities, financing-related procurement agency businesses, agency operations, and data center integration services, which lacked commercial substance. This resulted in false records in the company's annual reports from 2017 to 2021.
Based on prior successful investor judgments, investors who purchased East Group Co.,Ltd. stock between March 15, 2018, and May 12, 2023, and sold or continued to hold the stock after May 12, 2023, may still be eligible to file claims.
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