ojofreespins| ST Furun is punished and warned that damaged shareholders can claim compensation

April 25, 2024, Zhejiang Furun Digital Technology Co., Ltd.Ojofreespins: ST Furun (rights protection), code: 600070) issued the announcement on receipt of the notice of Administrative punishment from Zhejiang Regulatory Bureau of China Securities Regulatory Commission.

Li Jian, a lawyer from Zhejiang Yufeng Law firm (certificate number: 13301200210145176), who has represented investors in suing more than 100 listed companies, said that according to the penalty notice, ST Furun was suspected of misrepresentation of securities, and damaged shareholders could make claims in accordance with the law. (lawyer Li Jian's column)

According to the announcement, the Zhejiang Securities Regulatory Bureau found out that ST Furun was suspected of breaking the law as follows: the company falsely increased operating income and operating costs through fictional business, resulting in false records in the company's 2020 annual report, 2021 annual report and 2022 semi-annual report. From 2020 to the first half of 2022, the company inflated operating income by a total of 717225918.Ojofreespins.88 yuan, inflated operating costs totaling 715512264.14 yuan. Among them, the falsely increased operating income was 365766164.15 yuan and the operating cost was 364924901.98 yuan in 2020, accounting for 12.04% and 13.30% of the disclosed amount respectively, while in 2021, the falsely increased operating income was 142612952.84 yuan and the operating cost was 143233987.18 yuan, accounting for 10.87% and 11.11% of the disclosed amount in the current period, respectively. In the first half of 2022, there was a false increase of 208846801.89 yuan in operating income and 207353374.98 yuan in operating cost, accounting for 69.05% and 69.79% of the disclosed amount respectively.

Zhejiang Securities Regulatory Bureau plans to decide: to order ST to correct, give a warning, and impose a fine of 5.5 million yuan; give a warning to the relevant responsible personnel, and fine separately.

According to the new judicial interpretation of misrepresentation of securities, listed companies may sue for losses caused by investors suspected of misrepresentation of securities, including loss of investment difference, commission and stamp duty.

Lawyer Li Jian said that according to the judicial interpretation, it was tentatively decided that damaged shareholders who bought ST Fulun shares between August 27, 2022 and April 27, 2023, and held the shares at the close of trading on April 27, 2023, could claim compensation. Whether the compensation can be obtained and how much compensation is finally determined by the court shall prevail. (ST Fourun rights protection entrance)

Investors are required to provide securities account opening information inquiry form, stock statement (from August 1, 2022 to date), contact information, etc.

(this article is contributed by Li Jian, a lawyer from Zhejiang Yufeng Law firm, and does not represent the position of Sina Finance. Lawyer Li Jian, director of the Securities Law Research Society of China Law Society and securities dispute mediator of China Securities Association, was awarded the title of "excellent Young lawyer of Zhejiang Province" in 2009. Since 2003, lawyer Li Jian has sued more than 100 listed companies on behalf of investors with remarkable results. Among them, the false statement case of investors v. Hangxiao Steel structure was selected as the "Top Ten Mediation cases of the National Court of Justice" in 2012, and the false statement cases of investors v. Xiangyuan Culture and Zhao Wei were selected among the top ten commercial cases of the people's Court in 2019. The false statement case of investors v. Huifeng shares is the first ordinary representative case of securities dispute in Jiangsu Province. )