Foshan Lighting False Statement Regeneration Wave

After the Guangzhou Intermediate People's Court ruled that Foshan Lighting compensated more than 900 investors for nearly 60 million yuan, Foshan Lighting's false statement has made new progress. Recently, Foshan Lighting Investors lawyers received a batch of investors from the Guangzhou Intermediate People's Court v. Foshan Lighting false statement payment notice.

"Our litigation materials were submitted to the court from April 2014, but the previous court only accepted the case and it was not formally accepted. The notice payment means that the Guangzhou Intermediate People's Court has once again initiated the acceptance of the Foshan Lighting Investor Claims case." As Foshan Lighting Xu Feng, an attorney at Shanghai Huarong Law Firm, said that the company has accepted more than 500 investor claims. The statute of limitations shall expire on March 6 this year. At the latest, the claim materials must be submitted before the Spring Festival, and the “last train” for rights protection should not be missed.

The original defendant disputed the first-instance judgment. On March 6, 2013, Foshan Lighting issued a notice stating that it received the “Administrative Punishment Decision” from the Guangdong Securities Regulatory Bureau, and the company’s failure to disclose related transactions and other matters as required by law constituted a false statement. The warning was also fined 400,000 yuan.

According to the announcement issued by Foshan Lighting, on September 17, 2013, January 7, 2014 and March 14, 2014, the company received the relevant legal documents such as the “Notice of Responding” from the Guangzhou Intermediate People’s Court. A total of 1,303 people who filed the plaintiff’s complaint against the false compensation civil claims of Foshan Lighting Securities, the total amount of claims exceeded 180 million yuan.

On November 14, 2014, the court sentenced 930 investors to the first instance and sentenced Foshan Lighting to compensate investors for a total of 59.31 million yuan. On December 5, 2014, Foshan Lighting received 25 copies from the court. The judgment, the amount of compensation is 1.1 million. As of now, the court has made a first-instance judgment on 955 investor claims, and the total amount of compensation has exceeded 60 million yuan. It is reported that the first batch of judgments did not include B-share investors, and other cases were still at the stage of jurisdictional opposition. The specific court time was not determined.

A wave of unrest, a wave of up again. In December 2014, Foshan Lighting received a total of 17 investors' appeals, demanding that the first-instance judgment be revoked and the investment balance loss be fully compensated. Foshan Lighting said in the announcement that the first-instance judgment was wrong and the company should not bear any liability for compensation. It has appealed to the Guangdong Higher People's Court and has now entered the second-instance procedure.

In response to Foshan Lighting's appeal, Foshan Lighting's many investor attorneys believe that the possibility of second-instance rectification is not great. Foshan Lighting only wants to delay payment of compensation and minimize the influence of the case. The investor's appeal is mainly because the court's deduction of systemic risk factors is unreasonable and the compensation ratio is too low. The case involves a large number of people. In particular, both parties have great controversy about the method of calculating losses and deducting the basis of system risks. Under the current law, there is no uniform regulation. The industry generally hopes that this iconic case can promote false statements. Revision and improvement of judicial interpretation.

"The investors we represent also have some appeals, and even prepared to apply for retrial to the Supreme People's Court. I hope that this case will promote the Supreme People's Court to issue guiding cases and demonstrate the role of local courts in hearing such cases. Up to now, we have not received the notice from the Higher People's Court of Guangdong Province. The first trial involves more investors. It may take some time for all the files to be transferred to the Guangdong High Court. It is estimated that the second instance will wait until March this year.” Xu Feng said .

Investor claims don't miss the "last bus"

Some lawyers have suggested that although the first batch of first-instance judgments are currently being transferred to the second instance of the Guangdong Higher People's Court, it does not prevent the Guangzhou Intermediate People's Court from continuing to file applications for investor claims, but if the investor exceeds the statute of limitations, the investor will sue again. Foshan Lighting’s statutory defenses for non-compensation will make it difficult to obtain court support for its claim for compensation.

Lawyer Xu Feng believes that according to the judgment of the first instance of the court, he will buy Foshan Lighting A shares or B shares between July 15, 2010 and July 6, 2012, and sell or continue after July 6, 2012. Investors who suffer losses from holding shares can still participate in the claim. The lawyer also said, "In fact, except for the Spring Festival holiday in February, the time for investors to defend their rights will be even more urgent. If Foshan Lighting investors want to sue for rights protection, they must submit the claim materials before the Spring Festival, and those who still If investors who wait and see the results of the second instance do not join, they will lose the right to win.

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