Practical Guide to Stock Investment Rights Protection (Civil Compensation for Securities Fraudulent Misrepresentation)

【Answer 1】 I. What Is Stock Investment Rights Protection? Stock investment rights protection generally refers to civil redress actions whereby investors—having suffered losses due to illegal acts committed by listed companies, such as fraudulent misrepresentation, fraudulent issuance, insider trading, or market manipulation—lawfully seek compensation from responsible parties. Currently, the most common and institutionally supported type is disputes concerning civil liability for securities fraudulent misrepresentation. Common forms of fraudulent misrepresentation include: fabrication of financial statements; failure to disclose material events; misleading statements; and grossly inaccurate profit forecasts. II. Three Conditions That Must All Be Met to File a Claim III. Four Key Time Points IV. Scope of Compensable Losses Pursuant to Article 25 of the Provisions on Several Issues Concerning Civil Compensation for Fraudulent Misrepresentation, the scope of compensation is limited to investors’ actual losses, including: 1. Losses arising from the difference in investment value (the core component)—calculated as the difference between the average purchase price and the average sale price (or benchmark price), multiplied by the number of shares held; 2. Commission fees and stamp duty corresponding to the above-mentioned investment value difference; 3. Interest losses on the amounts specified above (calculated at the prevailing interest rate for demand deposits at commercial banks). V. Available Remedies (Ordered from Lowest to Highest Cost) VI. Statute of Limitations VII. Documents Required for Filing a Lawsuit 1. Identity documents: photocopy of ID card (for individual investors) or business license (for institutional investors); 2. Evidence of fraudulent misrepresentation: administrative penalty decision issued by the China Securities Regulatory Commission (CSRC), company announcements, notices of investigation initiation, etc. (if available); 3. Transaction records: securities account information and account statements (must bear the official seal of the securities firm’s branch office), specifying dates, quantities, and prices of purchases and sales.

No Recovery, No Fee! Rosen Law Firm Explains Securities Class Actions

【Answer 2】 Many investors have heard of “securities class actions,” but may not truly understand what they are—or how they can benefit them. Today, we’ve compiled answers to several of the most frequently asked questions to help you quickly grasp the essentials 👇 1️⃣ What Is a Securities Class Action? 👉 In simple terms, it is a legal mechanism enabling investors—who incurred losses due to a company’s fraudulent misrepresentation, financial fraud, or inaccurate disclosure—to jointly sue the company and seek compensation. 2️⃣ What Is the “Class Period”? 👉 It refers to the time period during which the stock price was artificially inflated by false information. Only investors who purchased shares—and sustained losses—during this period are eligible to join the litigation and receive compensation. 3️⃣ Who Is the “Lead Plaintiff”? 👉 The lead plaintiff serves as the “representative” of the class, appointed by the court to spearhead the case on behalf of all injured investors. Typically, this person has suffered the largest loss; however, any eventual victory and resulting compensation will benefit all qualified investors. 4️⃣ Advantages of Securities Class Actions ✔ Investors need not file individual lawsuits—saving time and effort; ✔ Contingency-fee representation: no upfront legal fees for investors; ✔ Even relatively small claims can be recovered collectively.

Chemours Investors Alerted to December 7 Deadline in Securities Fraud Class Action

4 days ago

A securities fraud class action has been filed against Chemours following an 18.63% stock drop linked to alleged misrepresentations of Opteon product demand. Investors have until December 7, 2026, to seek appointment as lead plaintiff.

PR Newswire

Chemours (CC) Investors Reminded of Securities Class Action Deadline on December 7, 2026

Morningstar

2026-10-09

Chemours Company Faces Securities Fraud Class Action Over Opteon Demand Claims

2026-10-11

Chemours Faces Securities Lawsuit Over Disclosures and Guidance

2026-10-11

Chemours Company Faces Class Action Lawsuit Alleging Investor Harm

2026-10-12

Class Action Lawsuit Filed Against Chemours for Misleading Investors on Product Demand and Financial Guidance.