BEIJING, Jan.3(Xinhua)-- The Guangdong Chaohua Technology Co., Ltd.(hereinafter referred to as \"Chaohua Technology \"), which was brought by the Chinese and small investors service center (hereinafter referred to as\" the service center \") on Tuesday, supported the lawsuit, with some investors winning a second instance judgment in favour of the Guangdong Provincial Higher People's Court (hereinafter referred to as \"the Guangdong High Court \") and 10 investors being awarded compensation.
On December 15,2017, Chaohua Science and Technology, Liang Jianfeng and Wang Xudong, three responsible subjects, were administratively punished by the Guangdong Supervision Bureau of the Securities Regulatory Commission (14) for violating the law and regulations on information disclosure. On February 23,2018, the Center publicly solicited support for damaged investors to file a claim against Chaohua Technology Chairman, President Liang Jianfeng, Vice President of Chaohua Technology, Financial Officer Wang Xudong and Chaohua Technology. By the end of the solicitation on March 9,2018, a total of 205 investors applied, and the center filed its first filing application in June 2018.
The 10 investors who received the second-instance verdict and were awarded were first in court in September 2018. In April 2019, the Guangzhou Intermediate people's Court of first instance ruled that Chaohua Science and Technology compensated plaintiff investors for the loss of investment balance, commission, stamp duty and interest totaling more than 10,000 yuan, and the defendants Liang Jianfeng and Wang Xudong assumed joint and several liabilities for liquidation. Following the judgement of the first instance, three defendants filed an appeal. The second instance judgment of Guangdong High Court rejected the appeal and upheld the original judgment. With the coordination of public interest lawyers,10 investors have fully paid their compensation.
Up to now, in addition to the above 10 investors being awarded a second instance judgment,11 unqualified investors have been publicly solicited;29 have expressly renounced their participation in supporting litigation, failing to cooperate in the preparation of the proceedings or unable to get in touch with them; of the remaining 165,54 have settled for a total amount of $10,000;35 have been awarded a first instance judgment with a total amount of $10,000, but are in the second instance because the defendant filed a lawsuit; and the remaining 66 investors have made it clear that the defendant will not proceed with the proceedings.
It is reported that as of the end of December 2019, the center filed a total of 24 support litigation, shareholder litigation 1. The total amount of support for the lawsuit was $100 million, and the total number of people compensated was 534, with a total amount of about $54.34 million. The approved losses involved nine courts in eight places,14 listed companies, and more than 3000 investors, involving an amount of about $100 million.
Yan Qingmin, vice chairman of the Securities Regulatory Commission, in his speech on the \"May 15 National Investor Protection publicity Day\" in 2019, proposed that improving the judicial relief model for small and medium-sized investors is the common responsibility of all sectors of society, such as supervision, legislation, justice, public welfare institutions and so on. In the process of handling the case, the center takes the principle of \"chasing the first evil\" as the principle to safeguard the legitimate rights and interests of investors.
The new revised securities law is about to come into effect, and will play a leading role in the future, taking the representative litigation as the entry point, promoting the implementation of the securities group litigation mechanism, perfecting the \"investment suit model\" and solving the practical problem of small and medium-sized investors'rights protection, the investment clothing center said.