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. Litigants (A) Plaintiffs Eligible to Initiate Civil Compensation Claims for Securities False Statements Investors, security holders, trustees, and asset management product managers—among whom investors and security holders include investment products lawfully established by market participants such as securities firms, fund management companies, insurance companies, trust companies, and commercial banks. (B) Liable Parties III. Types of False Statements IV. Loss Assessment The scope of civil compensation liability borne by information disclosure obligors is limited to the actual losses suffered by plaintiffs due to the false statement, specifically including: (A) Investment differential loss; (B) Commissions (0.03%) and stamp duty (0.1%) attributable to the investment differential loss. In securities false statement liability disputes, the term “Three Dates and One Price” refers to: the date of implementation of the false statement, the date of disclosure (or correction), the benchmark date for calculating investment differential loss, and the benchmark price for calculating investment differential 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, including newspapers, radio stations, television networks, regulatory authority websites, trading venue websites, major portal sites, or industry-recognized 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 security reaches 100% of its freely tradable shares, commencing from the date of disclosure or correction. If the cumulative turnover rate reaches 100% of 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 100% 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 between the date of disclosure (or correction) and the benchmark date, used as the benchmark price for loss calculation.

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 unlawful acts—including false statements, fraudulent issuance, insider trading, or market manipulation—by listed companies, 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 earnings forecasts. II. Three Conditions That Must All Be Satisfied for Claiming 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 differential 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 differential 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, notice of investigation initiation, etc. (if available); 3. Transaction records: securities account opening information and trade confirmation statements (stamped with the official seal of the securities firm’s branch office), specifying dates, quantities, and prices of purchases and sales.

Chemours Company Securities Fraud Class Action Notice

4 days ago

Kahn Swick & Foti LLC reminds Chemours investors of a securities class action lawsuit deadline of December 7, 2026, citing alleged nondisclosure regarding an 18% stock drop driven by refrigerant channel oversupply.

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