Disclosure of information into a "fatal wound"
History total surprisingly similar.
China-concept stocks in recent years the concept of a collective overseas cases, almost all the plaintiff's allegations are concentrated in a "disclosure of information" links.
In 2004, UTStarcom was California of the United States to prosecute a large law firm, v. from "the publication of false and misleading statements artificially boost its stock price." The same year, KongZhong investors accused by the United States to "hide the listing of the China Mobile companies including China, the 22 SP-wide network to the penalty decision "and the same being sued; because Netease have also revised annual earnings in 2000, and was sentenced to compensation for medium and small investors 4.35 million US dollars, while China Life Insurance and the five executives, directors in the 2004 collective litigation in the United States, is also against the "failure to make timely disclosure of adverse information" that the case is still in the process……
"China concept stocks frequently encountered legal disputes, the reasons for not accidental.", "Legal Risk Watch" researcher Zhang Yaling, the United States is one of the reasons for strict regulations. Its provisions, enterprises listed IPO alone, there prospectus contains inappropriate statements, omissions, misleading, improper IPO pricing, and other important information may be leaked litigation risks. Listed, the company may also be because the shares fell, did not achieve profit expectations, the financial statements distortion, major events such as improper disclosure of the accused to court.
With such detailed regulation system, the United States investors natural values corporate information disclosure. They believe that the financial norms for enterprises to survive this, the disclosure of information from the performance of listed companies is at least the face of the professional spirit of investors, the quality of information disclosure in corporate governance directly affect the performance of its authenticity and timely clearance of more things Enterprise life and death. This is the United States laws and regulations are not familiar with, internal controls and is not ripe for the Chinese companies, it is no small challenge.
In addition to stringent legal provisions, the two traditional commercial culture very different, collective action is frequently triggered an important reason. Zhang Yaling, many domestic enterprises have become accustomed to the decision makers of major decision-making should be kept confidential, but also the Chinese and international enterprises the process of integration has just started, neither Society and investment, dealing with shareholders, and no changes "in enterprises listed for Physically "The concept of these factors in the decision-makers are easy to unwittingly hide information on.
"Sued the causes are false, withholding information, which to some extent reflects the domestic capital market in the disclosure of information systems deficiencies. System from the point of view of China's information disclosure system compared with overseas markets, the biggest One of the gap between the cost of disclosure of information missing too low, the penalties for false low. some medium and small investors caused huge losses of listed companies violations, often only a fine of a few million or tens of million illegal income is far greater than its regulations cost. habit of thinking of this error once to the United States is tantamount to drawing fire upon themselves, the enterprise's shortcomings will be unlimited enlarge. "Zhang Yaling said.
Link:
Listed Companies in the United States Repeated Experience of Collective Action:Part 1
Listed Companies in the United States Repeated Experience of Collective Action:Part 2
Listed Companies in the United States Repeated Experience of Collective Action:Part 3