This series includes two civil cases and three criminal cases, covering scenarios such as public transfers by quoted companies, substantial asset restructuring of listed companies, and the issuance of false audit reports to defraud a bank of loans.
For instance, in Case No. Two, a civil liability dispute over false statements in securities, the core issue was whether a securities company, acting as an independent financial advisor, and an accounting firm shall be held liable for failing to exercise due diligence during a major asset restructuring of a listed company.
The court held that the parties’ duty of care and scope of liability should be determined based on the proportionality principle. taking into account factors such as the nature of their conduct, the degree of fault, the causal relationship between their conduct and investors’ losses, and other factors. Ultimately, the securities company was held jointly and severally liable for compensation to the extent of 25% of the civil liability for the false statements, while the accounting firm was held jointly and severally liable for 15%.
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Contributors: CJO Staff Contributors Team
