Key Litigation Points in Securities False Statement Liability Disputes

Taking Beijing as an example, among first-instance cases of securities false statement liability disputes filed over the past five years, all fall under the jurisdiction of the Beijing Financial Court. II. Litigation Parties (A) Plaintiffs Eligible to File Civil Compensation Claims for Securities False Statements Investors, security holders, trustees, and asset management product managers—among whom investors and security holders include securities companies, fund management companies, insurance companies, trust companies, commercial banks, and other market participants that have lawfully established securities investment products. (B) Liable Parties III. Types of False Statements IV. Loss Assessment The scope of civil compensation liability borne by the information disclosure obligor is limited to the actual losses suffered by the plaintiff due to the false statement, specifically including: (A) Investment price-difference loss; (B) Commissions (0.03%) and stamp duty (0.1%) attributable to the investment price-difference loss. In securities false statement liability disputes, the “Three Dates and One Price” refer to: the date of implementation of the false statement, the date of disclosure (or correction), the benchmark date for calculating investment price-difference loss, and the benchmark price for calculating investment price-difference loss. Date of Implementation: The date on which the information disclosure obligor makes the false statement or on which the false statement occurs. Date of Disclosure: The date on which the false statement is first publicly disclosed—and thereby becomes known to the securities market—on nationally influential media such as newspapers, radio stations, television networks, regulatory authority websites, trading venue websites, major portal sites, or industry-renowned self-media platforms. Benchmark Date: The cut-off date prescribed to reasonably delimit the calculation period for losses, thereby confining the plaintiff’s recoverable damages strictly to those caused by the false statement. In a centrally auctioned trading market, the benchmark date is the day on which cumulative trading volume of the affected securities—following the date of disclosure or correction—reaches 100% of the freely tradable shares. If the cumulative turnover rate reaches 100% of the freely tradable shares within ten trading days following the date of disclosure or correction, the tenth trading day shall serve as the benchmark date; if such threshold is not reached within thirty trading days, the thirtieth trading day shall be the benchmark date. Benchmark Price: The average closing price of each trading day from the date of disclosure (or correction) through the benchmark date, used as the benchmark price for calculating investment price-difference loss.

Practical Guide to Stock Investor Rights Protection (Civil Compensation for Securities False Statements)

I. What Is Stock Investor Rights Protection? Stock investor rights protection generally refers to civil redress actions whereby investors—having sustained losses due to illegal acts committed by listed companies, such as false statements, fraudulent issuance, insider trading, or market manipulation—lawfully claim compensation from liable parties. Currently, the most common and institutionally supported type is securities false statement liability disputes. Common forms of false statements include: fabrication of financial statements, failure to disclose material events, misleading statements, and grossly inaccurate profit forecasts. II. Three Conditions That Must All Be Satisfied to Claim Compensation III. Four Key Time Points IV. Scope of Compensable Losses Pursuant to Article 25 of the Provisions on Several Issues Concerning the Application of Law in Handling Civil Compensation Cases Arising from False Statements, the scope of compensation is limited to the investor’s actual losses, including: 1. Investment price-difference loss (the core component)—calculated as the difference between the average purchase price and the average sale price (or the benchmark price), multiplied by the number of shares held; 2. Commissions and stamp duty corresponding to the investment price-difference loss; 3. Interest losses on the above amounts (calculated at the prevailing interest rate for demand deposits with commercial banks). V. Remedial Channels (Ordered from Lowest to Highest Cost) VI. Statute of Limitations VII. Documents Required for Filing a Lawsuit 1. Identity documentation: photocopy of ID card (for natural persons) or business license (for institutional investors); 2. Evidence of the false statement: administrative penalty decision issued by the China Securities Regulatory Commission (CSRC), company announcements, notices of investigation initiation, etc. (if available); 3. Trading records: securities account opening information and account statements (stamped with the official seal of the securities firm’s branch office), containing transaction dates, quantities, and prices.

Chemours Company Faces Securities Fraud Lawsuit Over Opteon Demand Claims

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A class action lawsuit alleges Chemours made misleading statements regarding Opteon product demand and 2026 fiscal guidance. Investors purchasing shares between February and August 2026 are encouraged to contact SBS Law regarding potential lead plaintiff appointments.

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