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Securities Suits Against U.S.-Listed Chinese Companies Continue in Year's Second Half

In its comments about the elevated level of filings against U.S.-listed Chinese companies during the first months of 2011 in its mid-year report on securities class action litigation ( here ), Cornerstone Research noted both that the total number of such companies is relatively small and even made...

Cornerstone: Lawsuits Involving U.S.-Listed Chinese Firms Continue To Be Filed In Second Half Of 2011

In its comments about the elevated level of filings against U.S.-listed Chinese companies during the first months of 2011 in its mid-year report on securities class action litigation ( here ), Cornerstone Research noted both that the total number of such companies is relatively small and even made second...

Fights Worth Watching: Lehman Execs Spar over D&O Insurance, SEC Pursues Chinese Co. Auditor

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...

More Woes for Companies with Chinese Connections

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...

Federal Judge Dismisses Securities Class Action Against U.S.-Listed Chinese Company

In what is as far as I know the first outright dismissal motion grant in the wave of cases filed against U.S.-Listed Chinese companies that began last year, on October 6, 2011, Southern District of New York Judge Miriam Goldman Cedarbaum granted the defendants' motion to dismiss in the securities...

SciClone FCPA Lawsuit Settlement: New Enhanced Best Practices?

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 consolidated derivative...

SciClone Pharmaceuticals Settles FCPA Follow-On Derivative Lawsuits

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 directors and officers have agreed to settle the...

The Modest Early Settlements of Securities Suits Involving U.S.-Listed Chinese Companies

Beginning in 2010 and accelerating in 2011, plaintiffs' lawyers filed a wave of securities class action lawsuits against U.S.-listed Chinese companies, many of which obtained their U.S. listings via reverse merger. These cases have been making their way through the courts, and some have now reached...

Settlements Of Class Action Securities Lawsuits Involving U.S.-Listed Chinese Companies Are Relatively Modest

Beginning in 2010 and accelerating in 2011, plaintiffs' lawyers filed a wave of securities class action lawsuits against U.S.-listed Chinese companies, many of which obtained their U.S. listings via reverse merger. These cases have been making their way through the courts, and some have now reached...

Cadwalader Clients & Friends Memo: New York Federal Court Refuses to Dismiss Chinese Company From U.S. Price-Fixing Case

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...

Cadwalader Clients & Friends Memo: N.Y. Federal Court Refuses To Dismiss Chinese Company From U.S. Price-Fixing Case

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...

Is China Giving Carte Blanche for Anti-Competitive Conduct by PRC Companies Doing Business Overseas?

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...

Casino Industry Suffering From China Denial Syndrome

I 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 audits of...

E&Y Settles Ontario Sino-Forest Securities Suit for $117 Million

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...

The Week In Securities Litigation: SEC Targets Chinese Affiliates of Major Audit Firms, Market Professionals

Chinese affiliates of major audit firms and market professionals were the focus of securities enforcement litigation this week. Five PRC based affiliates of major international accounting firms were named as Respondents in an administrative proceeding the Commission directed be filed under Rule 102(e...

Ernst & Young Settles Sino-Forest Securities Litigation Filed In Ontario For $117 Million

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 the...

Big Award in Chinese Reverse Merger Case

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...

Securities Suit Against U.S.-Listed Chinese Company Dismissed

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...

New York Federal Judge Dismisses Securities Suit Against U.S.-Listed Chinese Company

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 suit...

Corruption Allegations: More Securities Suits Against U.S.-Listed Chinese Companies?

As many readers will recall, a couple of years ago there was an intense barrage of securities litigation class action lawsuit filings against U.S.-listed Chinese companies. Many of the cases involved Chinese companies that obtained their U.S. listings by way of a reverse merger with publicly traded shell...

More About Stories We're Following: Libor Scandal, FIRREA, Chinese Company Securities Suits

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...

Shareholders Obtain $882 Million Default Judgment in Longtop Financial Securities Suit

During the period 2010 to 2012, plaintiffs’ lawyers rushed to file a wave of securities suits against U.S.-listed Chinese companies. In general, the cases filed as part of this wave that have reached the settlement stage have settled for relatively modest amounts. However, at least one of these...

Second Circuit Vacates Dismissal of JinkoSolar Securities Suit

In an interesting July 31, 2014 opinion ( here ), the Second Circuit vacated the dismissal of the securities class action lawsuit that had been filed against JinkoSolar Holdings Co. Ltd, and certain of its directors and officers, as well as against its offering underwriters [an enhanced version of this...

Fraud Proof Challenging in Chinese Companies’ US vs. PRC Filings

A fascinating recent piece in the New York Law Journal talks about the many dismissals of class action cases against US public companies based in China for alleged fraud. The cases say that because these companies’ regulatory financial filings in China are sometimes different than the SEC filings...