On 12 Nov. 2021, Guangzhou Intermediate Court issued a judgment ordering Kangmei Pharmaceutical Co., Ltd. to compensate securities investors for losses of 2,459 billion in CNY (approximately $385 million in USD).
This case is the first securities class action lawsuit in China, involving more than 50,000 investors, the vast majority of whom are small and medium-sized investors. China Securities Investors Services Center participated in the class action as the special representative of more than 55,000 investors.
The defendants awarded damages, in this case, include not only the listed company but also its actual controller and executives, as well as the auditor who issued the annual report and the accountant and project manager who signed it. This is the highest liability for accountants in China for securities business.
The Guangzhou Intermediate People’s Court found Kangmei guilty of committing fraudulent statements in its disclosure of annual and semi-annual fiscal reports.
Cover Photo by Darmau Lee on Unsplash
Contributors: CJO Staff Contributors Team
