Foshan Lighting Claims Case on July 9

After the Eastern Electronic Claims case, the Foshan Lighting Case, which has the largest amount of claims in China's securities market, is finally going to sit. The author has learned from several securities rights lawyers that the previous day, the investor lawyer and the company commissioned the lawyer have already exchanged evidence before the court. Up to now, more than 1,300 investors in the country have filed claims for compensation, amounting to nearly 200 million. It is worth noting that the deadline for filing a lawsuit is March 2015, and investors can still sue.

Evidence exchange completed on the 7th of this month

It is reported that the case of the trial was only part of the many prosecutors, and they were represented by two rights defenders. The pre-trial evidence exchange of the case was conducted at 9:00 am on July 7, 2014 at the Guangzhou Intermediate People's Court. The number of 163 shareholders claiming by Wu Lijun, a securities lawyer of Shanghai Oriental Cambridge Law Firm, was more than 10 million. The lawyer of Shanghai Jiesai Law Firm Wang Zhibin was involved in 352 people, and the amount claimed was 47.65 million yuan. The two lawyers exchanged and cross-examined the evidence submitted by the lawyers commissioned by Foshan Lighting.

It is reported that the evidence exchange work has been carried out from 9:00 am to 2:00 pm, and all the relevant evidences of the first-tier plaintiffs' stockholders have been exchanged. At noon, both the original defendant and the court staff did not rest and eat.

Systemic risk will be the focus of controversy

Lawyer Wu Lijun said that the exchange of evidence was very smooth and laid a solid foundation for the opening of the court on July 9. “Guangzhou Intermediate People’s Court is one of the most professional courts in contact with the case of accepting such disputes in the false statements of such securities. It is perfect in procedures such as acceptance, filing, adjudication, and notice of court hearings, judges and other court staff. Excellent and serious work attitude left a deep impression on me.” Wu said to the author, “Guangzhou Intermediate People’s Court has established a special financial trial court to professionally handle financial litigation cases. The judges who heard the case have a very good Professional literacy lays the foundation of authority for the fairness and professional results of this case."

Lawyer Wang Zhibin also said that in the exchange of evidence on the 7th, Foshan Lighting submitted a total of 20 pieces of evidence, mainly intended to prove that the bear market from 2010 to 2012, the loss of investors is caused by systemic risks. "We also submitted 8 sets of evidence. Among them, we have three sets of evidence on the issue of systemic risk. We have proved that the Shenzhen Component Index has only slightly dropped by 4.48% from the implementation date to the base date in the past two and a half years. It is a normal fluctuation, there is no systemic risk, while Foshan Lighting stocks fell by 46.37% over the same period, far exceeding the broader market decline.” Wang lawyers expect that the subsequent system, systemic risk will be the focus of controversy, we have confidence in the ultimate victory . ”

The question and answer of the rights and interests of the investors is more than a year. The Foshan lighting investors have finally ushered in the official court session, and they are one step closer to the final compensation. The author summarizes the legal issues with the most consultations of investors and has answered them.

1. Which shareholders are eligible for the claim?

Answer: Anyone who buys Foshan Lighting stock from July 15, 2010 to July 5, 2012 (including that day) will be sold or will continue to hold on July 5, 2012 (excluding that date). Stocks, and there is a loss of investment balance, that is, in line with the conditions of the lawsuit.

2. Does the prosecution require the shareholders to go to the court in person?

Answer: Shareholders can choose to be prosecuted by a lawyer and do not need to go to and from the court.

3. How long does it take to sue for compensation?

Answer: According to the law and the practice of past cases, the time for compensation in this case is within 2015.

4. Foshan Lighting's share price rebounded in 2014. Can investors who have no losses at present participate in the claim lawsuit?

Answer: As long as the above-mentioned buying and holding time conditions are met, from the legal point of view and in combination with the trend of the stock price K-line chart, it has been presumed that the investors have investment losses. After May 7, 2013, regardless of whether Foshan Lighting's share price rose or fell, it has nothing to do with the claim. Therefore, even if the investors make money in 2014, they will not affect the loss claims between 2010 and 2012.

5. How big is the chance for investors to win?

Answer: According to incomplete statistics by securities rights lawyers, as of the end of 2011, about 50 listed companies in the country have become defendants in civil claims for false statements, and about 10,000 investors have been prosecuted, and 90% of investors have obtained Compensation, the amount involved is 800-900 million.

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