Stock Claims • How to handle CITIC Guoan claims. On June 28, according to the latest news from the securities litigation lawyer team of "Guishun.com Official Website", which specializes in handling securities claims: ST Guoan (CITIC Guoan, 000839) was suspected of violating laws

stock claims • How to handle CITIC Guoan claims

On June 28, according to the latest news from the securities litigation lawyer team of "Gudun.com Official Website", which specializes in handling securities claims: ST Guoan (CITIC Guoan, 000839) is suspected of illegal information disclosure Violations have triggered lawsuits from investors. The case is currently being heard by the Beijing Third Intermediate People's Court. Investors who meet the conditions but have not joined the lawsuit should register their claims in a timely manner.

Stock Shield Network has previously launched CITIC Guoan investor claims registration. Search "St Guoan Stock Shield Network" to learn the details of ST Guoan stock claims and register them. Anyone who bought CITIC Guoan between February 6, 2010 and May 15, 2020 The stock, and investors who held the stock at the close of trading on May 15, 2020, can participate in the claim.

The background of the stock claim in this case is that on May 17, 2020, CITIC Guoan received the "Investigation Notice" (Shaanxi Securities Investigation No. 2020036) from the China Securities Regulatory Commission. Because the company is suspected of violating laws and regulations in information disclosure, the China Securities Regulatory Commission decided to launch an investigation into the company in accordance with the relevant provisions of the Securities Law of the People's Republic of China. The regulatory agency found that CITIC Guoan had falsely recorded annual reports for seven consecutive years from 2009 to 2015, accumulating a total of inflated profits of 1.013 billion. Its fraudulent behavior caused heavy losses to investors.

CITIC Guoan’s 2021 annual performance report shows that the company achieved operating income of 2.66 billion yuan, net profit of -1.476 billion yuan, net profit after non-deductions of -1.191 billion yuan, and net cash flow generated from operating activities -74.0458 million yuan. As of December 31, 2021, its company's current liabilities are higher than its current assets, some of its debts are overdue, and its net profit after deductions has been negative for four consecutive years.

The 2021 financial report released by the company on the evening of April 29 showed that due to the company’s securities misrepresentations between 2009 and 2015, some investors of the company filed a lawsuit with Beijing No. 3 Intermediate People’s Court, requesting the court to order the company to compensate. It suffers investment losses and bears all litigation costs of the case.

As of December 31, 2021, the cumulative litigation amount is 203 million yuan. The above-mentioned cases have been filed and have not yet been heard in court. The company expects that the first-instance judgment and pending litigation are likely to result in the company being liable for compensation, and the above-mentioned litigation matters will be recognized as estimated liabilities and non-operating expenses.

Previously, CITIC Guoan announced that the No. 1 Intermediate Court in Beijing ruled that seven companies including CITIC Guoan Group Co., Ltd. (including CITIC Guoan Co., Ltd.) should be de facto merged and reorganized, and the administrator of Guoan Group was designated as the de facto merger of seven companies including Guoan Group. Reorganization manager. The stock hit its daily limit that day. The announcement stated that there is still uncertainty about the reorganization plan of seven companies including Guoan Group and whether the reorganization can be successful. The company's controlling shareholder Guoan Co., Ltd. has been ruled to be included in the scope of substantive merger and reorganization, which may lead to the risk of change of control of ST Guoan.

The latest situation of shareholders filing lawsuits and claims in court. The case was heard in Beijing No. 3 Intermediate Court on May 27, 2022. Since CITIC Guoan's violations have been implemented for 10 years, lawyers from both the original and defendant sides have launched a heated debate around the new judicial interpretation issued by the Supreme Court in 2022 on whether and how to deduct systemic risks and non-systemic risks. The two sides have huge differences in their views, and they will have to wait for the court summons to make further arrangements.

It should be noted that Article 85 of the new " Securities Law " has changed the liability for the actual controllers and controlling shareholders of listed companies from the original "fault principle" to the " fault presumption principle " unless sufficient evidence can be provided to prove it. You are not at fault, otherwise you will be liable for compensation. This provision is actually quite severe, showing that the punishment mechanism has changed and that the government has zero tolerance for major violations of laws and regulations by listed companies, executives, and major shareholders. Some of the shareholder lawsuit cases handled by the

Stock Shield Lawyer Team have received the "Acceptance Notice" from the court. The case will enter subsequent court proceedings. The

legal team reminds investors that according to the new Securities Law implemented on March 1, 2020, the law supports investor claims caused by false records, misleading statements or major omissions. CITIC Guoan has been put on file by the China Securities Regulatory Commission for suspected violations of information disclosure laws. Investors may initiate lawsuits to recover part of their investment losses.

CITIC Guoan has been mainly engaged in enterprise comprehensive information services business, cable TV network business, network system integration and application software development business, new energy business, real estate development business, and equity investment business in recent years. It will spin off the new energy business in 2018 and the network at the end of 2021. System integration and application software development business divested.

According to the "Securities Law" and relevant judicial interpretations, if a listed company makes a false statement and the China Securities Regulatory Commission makes an administrative penalty decision, investors who suffer losses due to the listed company's false statements can claim compensation. The scope of compensation includes investment differences, Loss of commission, stamp duty and interest.

If the securities regulatory department ultimately imposes administrative penalties on the listed company for false statements, the injured investors can file a lawsuit in a court with jurisdiction for compensation. The CITIC Guoan stock claim case is currently being processed. Investors can check the public information of stock shield website for further details.

How CITIC Guoan claims for rights protection:

Investors’ claim registration is now open. Investors who meet the relevant claim conditions can, from now on, fill in the loss information in the “Claims and Rights Protection Registration” column on the Stock Shield Network page and participate in rights protection claims. Collection. If the investor's relevant circumstances are reviewed and meet the conditions for filing a case, the rights lawyer will further notify the investor to handle legal matters regarding claims. The above is an in-depth analysis of ST Guoan's major violations that triggered investor lawsuits. The court has issued a "Notice of Acceptance". Qualified shareholders should handle the content in a timely manner. Investors can refer to it.