Summit Won nearly One Million Yuan Compensation for the Investor in the Lawsuit of the Security Fraud
With the sustaining increased demands to regulate the stock markets and supervision from China Securities Regulatory Commission (CSRC), more and more companies, along with their investment banks, accounting firms, and law firms are punished by CSRC for their actions of false statements, insider trading, and market manipulation. Such actions not just break the laws and regulations but damage legitimate interests of the investors. A growing number of the investors file lawsuits against the companies in relation to their security fraud actions.
SUMMIT recently won a primary trial of security fraud case for Ms Hu, an investor of Shanghai Da Zhi Hui Corporation (DZH). The judges of Shanghai No.1 Intermediate People’s Court ruled in favor of the investor, ordering DZH to compensate Ms. Hu more than 860 thousand yuan. The court also held the staff of DZH and BDO China Shu Lun Pan CPAs (BDO) – the accounting to DZH- jointly liable for the compensations.
The litigators of SUMMIT demonstrated the case from the aspects of economy injury level and the adequacy of the legal basis to the ability of compensation, and the case’s typicality. Our litigation team also established strong evidence for the case, which was crucial to win the case in the first trial.