As I noted in a post last week discussing the derivative lawsuit and settlement involving 21st Century Fox, allegations of failure to prevent alleged misconduct within company operations or at company facilities can translate into potential liability exposure for the company and its senior management. Another example of this phenomenon has emerged. In the weeks just after RYB Education completed its late September 2017 IPO, news reports began circulating of alleged child abuse at company preschool education facilities in China. Now a shareholder has filed a securities class action lawsuit in the U.S. against the company and certain of its executives. As discussed below, this new lawsuit represents the latest example of several different securities class action lawsuit filing trends.
Continue Reading Chinese Preschools’ Child Abuse Reports Lead to U.S. Securities Suit Against Recent IPO Company
U.S.-Listed Chinese Companies
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. This ruling will be of interest to many readers because …
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 cases has now resulted in an absolutely…
Libor-Scandal Antitrust Plaintiffs Allowed to Seek Leave to Amend Their Allegations
Citing the “obvious magnitude” of the Libor-related antitrust litigation, Southern District of New York Judge Naomi Reice Buchwald has given the plaintiffs leave to attempt to amend their complaints to address the shortcomings that previously led her to grant the defendants’ motion to dismiss. Judge Buchwald granted the plaintiffs’ request for leave to file a motion…
Panel Determines U.S.-Listed Chinese Company Was a “Fraudulent Enterprise”
In what is as far as I know the first determination of liability in connection with the recent wave of litigation filed against U.S. listed Chinese companies, a Hong Kong-based arbitration panel has entered an award in favor of an investment unit of C.V. Starr of over $77 million against China MediaExpress Holdings and related…
Securities Suit Against U.S.-Listed Chinese Company Survives Dismissal Motion in Part
On August 24, 2012, in a decision involving a U.S.-listed Chinese company that is of particular interest because of the significance the court attached to the discrepancies between financial figures the defendant company reported to the Chinese government and the figures it reported to the SEC, Southern District of New York Judge George Daniels denied…
Second Circuit Revives Dismissed Securities Suit Against U.S.-Listed Chinese Company
In October 2011, when Southern District of New York Judge Miriam Goldman Cedarbaum dismissed the securities class action lawsuit that had been filed against China North Petroleum Holdings, Ltd, it was the first of the many cases recently filed against U.S.-listed Chinese companies to be dismissed (as discussed at length here). However, in an…
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 the settlement stage. The settlements seem to share more in…
Class Certification Denied in Securities Suit Against U.S.-Listed Chinese Company
During 2010 and 2011, a number of securities class action lawsuits were filed against U.S.-listed Chinese companies. Plaintiffs’ lawyers seemed eager to pursue these cases despite likely procedural and practical challenges such as likely difficulties in obtaining discovery, as well as language and cultural barriers. And if a recent decision in one of these cases…
How Far Can the Plaintiffs Really Go With the Cases Against U.S.-Listed Chinese Companies?
During 2011, plaintiffs filed a wave of securities class action lawsuits against U.S.-listed Chinese companies. There were 39 of these lawsuits filed in 2011 (out of 218 total securities class action lawsuit filings in 2011), as discussed here. Often the complaints in these lawsuits consisted of little more than a repetition of the allegations…