AllBright, Walson, KWM, W&H on China’s first class-action lawsuit against corporate fraud
The Intermediate People's Court of Guangzhou ruled on November 12 against Kangmei Pharmaceutical Co and some of its former executives, handing victory to investors in China's first class-action lawsuit against corporate fraud.
Under the ruling, Kangmei must pay 55,326 investors a total of 2.46 billion yuan ($385.51 million) to reimburse their losses. Former Chairman Ma Xingtian and his wife, as well as four former executives, are liable for the obligations.
The ruling was hailed by China's securities regulator as a "milestone" event in the country's capital markets. Kangmei was engaged in intentional and systematic financial cheating worth 30 billion yuan ($4.60 billion) between 2016 and 2018.
According to the verdict, the investors were represented by AllBright Law Offices and Shanghai Walson Law Firm. King & Wood Mallesons acted as Kangmei’s proceeding representative, with W&H Law Firm acting as its legal advisor. The chairman couple was advised by criminal defense boutique Guangdong Song Law Firm. Hylands Law Firm, Commerce & Finance Law Offices and other six firms also represented different defendants in the case.
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