With the temperatures reaching mind-bending levels, we
considered it advisable to stay inside, drink plenty of fluids, and limit our
exertions. So in lieu of a more elaborate post, we have simply noted some
mid-summer quick hits below.
Action against U.S.-Listed Chinese Companies
U.S. and Chinese regulators recently met in Beijing to
discuss audit oversight cooperation. Those meetings are of particular interest
in view of the questions which have been raised in recent months regarding the
financial statements of Chinese issuers whose shares are traded in U.S.
A group of former executives of a Lehman Brothers
subsidiary is seeking to block the bid by senior Lehman executives
to use $90 million of the remaining D&O insurance proceeds to settle the
cases pending against them. As discussed here ,
on August 24, 2011, the senior executives filed a motion...
SciClone Settles FCPA Follow-on Derivative
Suit : In a settlement that involves a company with
significant Chinese operations -- and that also may represent something of a
template for the settlement of FCPA enforcement follow-on civil lawsuits --
SciClone Pharmaceuticals and the individual defendant...
In a story in the D&O
Diary , entitled " More
Woes for Companies with Chinese Connections ", Kevin LaCroix discussed
the settlement reached by the entity SciClone Pharmaceuticals, and its
individual defendant directors and officers, in litigation involving three
In a decision filed on August 7, 2012, in a federal court
in New York, a judge ruled that a Chinese company could not evade jurisdiction
of the U.S. courts and must face the prospect of a trial for colluding to fix
the price of vitamin C exported from China into the United States. Two Chinese subsidiaries...
by Yasue (Becky) Nao Koblitz and Ling Zhang
On June 29, 2012, MOFCOM and
other agencies issued a "Implementation Opinion" (which contains
broad sweeping policy statements). PRC companies should be careful not to
interpret this Opinion as carte blanche for anti-competitive behavior while...
warned at re: The Auditors in July that the U.S. Securities and
Exchange Commission and the audit regulator, the PCAOB, were publicly ignoring
more important implications of their restricted access to Chinese
auditors than the delisting of Chinese companies or the invalidation of the
In what is by far the largest settlement in the current
wave of securities litigation involving Chinese companies, Ernst &Young,
which served as the outside auditor for Sino-Forest, has agreed to pay C$117
million to settle the securities suit that Sino-Forest investors filed
in Ontario against...
In what appears to be the first actual judgment in the
several dozen cases involving allegations of impropriety in cases of Chinese
companies that went public in the US, a $77 million arbitration award was
granted to a plaintiff in an arbitration case in Hong Kong.
AIG CEO Hank Greenberg's...
In a January 22, 2013 opinion ( here) ,
Southern District of New York Judge J. Paul Oetken has
dismissed one of the many securities class action lawsuits that were filed
against U.S.-listed Chinese companies in 2011. Though the primary interest in
the case may be that it involves U.S. securities...
NCUA Files Libor Manipulation Antitrust Suit: Even though the federal judge presiding over the consolidated Libor antitrust litigation has granted the defendants’ motion to dismiss the antitrust claims, the federal credit union regulatory agency has filed a new action against Libor rate-setting...