Rise in securities class actions against U.S.-listed Chinese firms

FRT Admin
Site administrator
November 30, 2015

 

Within the past couple of years, we have witnessed an on gong trend of securities class actions against Chinese firms listed on the U.S. market. Even though we have seen a slight drop in filed actions compared to the historical average, foreign companies listed on the U.S. market make up a quarter of all securities class actions filed. Chinese firms make up half of those listed on the U.S. market.

chinariseChinese firms over the past ten years have taken advantage of the additional available capital they can raise by listing on the large U.S. stock exchanges. With the rise of firms on the U.S. market, a key factor towards the rise in litigation comes from different disclosure obligations in China compared to those in the U.S. Due to the disclosure differences, most cases are based off minor differences in accounting reports, which is enough for an action to be filed with merit. As we’ve discussed before, it is very important for Chinese companies that are listed on the U.S. exchanges to understand the disclosure obligations in both jurisdictions.

Read more about the increase of securities class actions about Chinese listed firms here.

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U.S. CLAIMS  I  GLOBAL GROUP LITIGATION  I  ANTITRUST  I  LITIGATION MONITORING  I  BUYOUTS

Founded in 2008, Financial Recovery Technologies (FRT) is the leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability, and transparency available. For more information, go to www.frtservices.com.

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and do not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.

ABOUT FINANCIAL RECOVERY TECHNOLOGIES
SETTLED  I  NON-US GLOBAL OPT-IN  I  ANTITRUST  I  GLOBAL PASSIVE  I  DIRECT OPT-OUT  I  BUYOUTS

Founded in 2008, Financial Recovery Technologies (FRT) is a leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

 

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.