SHANGHAI (AFX-ASIA) – The Harbin Intermediate People’s Court will hold a hearing on Aug 23 on a suit filed by stock investors seeking compensation from A-share firm Daqing Lianyi Petrochemical Co Ltd, the Shanghai Daily reported, citing the Shanghai Allbright Law Office.
Shanghai Allbright is representing the 72 investors, who are seeking compensation for losses allegedly resulting from the false inflation of earnings by Daqing Lianyi, the report said.
The largest individual compensation claim filed by the 72 investors amounts to 150,000 yuan. (US$1=8.28 yuan).
Shenyin & Wanguo Securities Co Ltd has been named as the second defendant in the suit.
This will be the first hearing by a domestic court of a compensation claim by stock investors.
In January, the Supreme People’s Court issued a circular stating that courts may accept lawsuits against listed companies that have been punished by the China Securities Regulatory Commission for false corporate disclosures, the report said.