Purple Xin Pharmaceutical Fraud investors claim or over billion

From the early yin-Guang Xia, Lantian shares, to the green Earth (002200, shares bar) and the purple-Xin pharmaceutical industry, under the impetus of the behind-the-scenes push, the use of non-public information for profit and even financial fraud to deceive investors, has become a a-shares can not afford the war. The purple Xin Pharmaceutical industry attempts in the A-share market "empty gloves White Wolf", its high performance growth behind is the huge self purchase to sell the related transaction and the false transaction. Although after more than two years of investigation, the SFC finally issued a 400,000-yuan ticket, and 8 executives to give administrative penalties, but the path of investor claims is still very long the SFC a paper "Administrative penalty decision book" Finally Let Bitter wait for more than two years of shareholders Shen Shi see the Dawn. "Punishment is more than two years late, but the belated justice, also count justice." "Shen Shi to the international finance newspaper reporter said. February 22, the Purple Xin Pharmaceutical issued a notice, February 21 officially received the SFC issued the "Administrative penalty decision book." August 2011, a number of media to the purple Xin pharmaceutical performance of high growth has been questioned. The month of 16th, China Securities Network reported that the purple Xin pharmaceutical "self-acting" upstream and downstream customers, concocted a "blockbuster scam", a wave of waves, then the company suspended two months of self-examination, the results of the people's surprise. Investors, such as not to wash the doubts after the stock price rebound, but the SFC filing examiner, and this check is more than two years. "According to the regulations, only after the SFC issued a disciplinary opinion, investors can start to claim." "Song Yixin, a lawyer at the Shanghai New Hope Shanda law firm, said to the international finance daily. So far, dozens of investors have contacted them to make a claim to a listed company. Beijing days to ask law firm lawyer Zhangyuanzhong as Yan some more than 50 purple Xin pharmaceutical small shareholder's deputy lawyer, is preparing the lawsuit material. For information disclosure violations, March 4, the Purple Xin Pharmaceutical industry held a public apology, to investors apologize. But for shareholders to claim the issue, the company Dong Zhong Yunshan only said that the company will be in accordance with the relevant laws and regulations, did not disclose further arrangements. High growth did not bring high returns August 16, 2011, and this year more than 200 trading days, Shen Shi get up early, morning exercise back, open their computer ready to wait for a a-share opening. At this point, he did not know that a storm was approaching. "Be sure to look at the rest of your savings," he said. Shen Shi said that all the savings were May 2011, because the company adjusted, he had to retire early, to get a buyout of the length of money, about 200,000 yuan. He put the money into the stock market. Prior to this, Shen Shi has nearly ten years of experience in the stock, although the decade has not been able to rely on stocks big rich, but can maintain a single-digit profit, has let the old investors very satisfied. "I began to focus on the company when it released the quarterly Bulletin of 2011," Shen Shi explained, explaining why he chose the purple medicine stock. 400% of the net profit growth rate is very impressive, and the company has a wealth of ginseng resources, follow-up growth potential is great. "April 16, 2011, the Purple Xin Pharmaceutical Industry announced a quarterly report, net profit exceeding the expected growth of 468.88%. After the results were announced, the company's share price rose from 16 to 20 yuan in three days. At the beginning of May 2011, after receiving the retirement money, Shen Shi in May 18 to 18.5 yuan/share price bought 10,000 shares of purple medicine industry. "At the end of May, there was a wave of pullback at the company's share price, which was tense, but the fall did not break the April lows and refrained from selling it," he said. "Shen Shi said," then as the market for the company's optimistic forecast for the semi-annual, the stock price soared, up to 24.36 yuan. However, before and after the 2011-year report, the situation has changed, the Chinese newspaper did not have a good quarterly performance, during which there are media on the company's ginseng business sales data and a series of questions raised questions. July 29, 2011 reported the day, the purple Xin pharmaceutical industry shares fell 5.29%. Such fluctuations to Shen Shi vigilance, he on July 29, 2011, the reduction of 1000 shares. "I used to call the Purple Xin pharmaceutical company Asked about the media coverage of things, I hope the company can give a statement, they said the media report is not true, the company will issue a clarification announcement." Shen Shi recalls. SSE website information shows that on July 29, 2011 and August 10, the purple Xin Pharmaceutical industry has issued two articles on the Web site Forum reproduced company registered shell company, empty to buy and sell ginseng fake and the securities Market Weekly questioned the company's revenue growth and related transactions clarification announcement. After the second clarification of the announcement, the Purple Xin pharmaceutical stock began to slowly rebound, Shen Shi tense mood to be pacified. This also makes August 16, 2011, the network spreads again about the purple Xin medicine Industry Negative news, Shen Shi did not pay attention to. "Unexpectedly the next day, the purple Xin Pharmaceutical industry to suspend business." "At that time, Shen Shi into anxiety," call the company to communicate, the other just said to the media reports self-examination, when the card is not the exact news. No one thought, wait until the will is the purple Xin Pharmaceutical industry by the SFC to file investigations. "No need to think, the company will definitely fall off the card, just a few problems." "October 24, 2011, the Purple Xin pharmaceutical Shen Shi early in the morning, the price of the drop will be in the hands of the 9000 shares hang out, the result is obviously, not sell off." October 25, 2011, Hang again, can't sell. October 26, 2011, continue to hang, only in the early trading close, the price of 15.1 yuan/share sold. At this time, Shen Shi loss of nearly 30,000 yuan. "Are hard-earned money, if it is investment mistakes, these losses, but the company if it is through business fraud, lured investors, the loss of the company must compensate." Shen Shi told reporters that he was preparing the material for submission to the lawyer. Song Yixin said that from March 30, 2011 to August 16, 2011 to buy Purple Xin pharmaceutical stocks, and after August 16, 2011 sold or continued to hold investors, can be to the purple pharmaceutical industry claims. The claim is not very difficult. In fact, two years ago, Shen Shi consulted a lawyer about the claim, but were told that in accordance with the current provisions, investors to prosecute listed companies false statements must have the premise that the executive authorities issued a formal administrative punishment, or a criminal penalty document issued by the judicial organ in force. Song Yixin said that according to the SFC's punishment decision, can be found in the letter of the Purple Xin Pharmaceutical industry breach of the law constitutes a false statement of securities, the interests of the injured investors can sue the court for the company's losses. Zhejiang Yufeng Law firm lawyer Kingjian pointed out that the purple Xin pharmaceutical false statement led to heavy losses of investors. Data show that August 16, 2011, purple Xin Pharmaceutical close to 20.71 yuan/share, October 24, 2011 stock after the shares after the fall of a consecutive 3rd, after the stock price continued to fall, January 6, 2012 close to 6.99 yuan/share. According to Shili, the partner of Beijing surplus law firm, the amount claimed may be over billion. Shili in the media interview, said: "The annual report of the Purple Xin Pharmaceutical industry, the number of shareholders is more than 45,000 households, the company's total stock is 512 million shares, the circulation of shares is 413 million shares." The total number of shareholders and shares is staggering. Conservative estimate, the amount of money claimed is not big. "I am currently entrusted with more than 50 shareholders, the total loss of 8 million yuan to 10 million yuan." At present, we are preparing the lawsuit material. "Zhangyuanzhong said. February 24 this year, as Yan, such as more than 50 purple Xin pharmaceutical small shareholders of the deputy lawyers, Zhangyuanzhong the lawyer letter to the listed companies, in the lawyer letter, Zhangyuanzhong on behalf of the Purple medicine industry, small shareholders to the company to make claims, hope to negotiate with the company through friendly consultations and the settlement of its loss of compensation issues If the Xinxin pharmaceutical industry does not reply within 10th after receiving a letter from a lawyer, he will take appropriate legal procedures to resolve the claims of the client. However, the attitude of the purple-Xin pharmaceutical to the investors ' claim is not clear. March 12, the reporter called Purple xin pharmaceutical industry dong Zhongyun incense, Dong secret Office a staff to inform, Zhong Yunshan is not in, "they are busy in the annual report of the event." March 13, the reporter learned from the Zhangyuanzhong, the Purple Xin pharmaceutical company has not been directed to the letter of the feedback. In fact, on the afternoon of March 4, the Xinxin pharmaceutical industry has held an open apology at the Shenzhen Mutual Investment platform. One investor said directly: "2011, see the Purple Xin Pharmaceutical performance is very good, net profit growth twice times, invested all the savings, thought can have a good income, but never thought the company but conceal those related transactions, was exposed by the media, the stock price plummeted, heavy losses, the company how to compensate for our losses? In this regard, Zhong Yunshan replied that for information disclosure violations, the company directors, supervisors and senior management staff sincerely apologized to the vast number of investors. The company will further improve the standard of operational awareness, strengthen the company's internal governance and information disclosure management, true, accurate, complete and timely implementation of information disclosure obligations. And for the claim, Zhong Yunshan only said: "Two-tier market share price changes by the State policy, macroeconomic environment, the company's production and management, and other aspects of the impact of the shareholders to claim the issue, the company will be in accordance with the relevant legal procedures." However, Song Yixin said, according to past cases, the purple Xin Pharmaceutical investors have been compensatedMore likely. "false statement" means that the issuer or the listed company does not tell investors the events which have great influence on the production and operation of the company when the information is disclosed, so that the investors ' judgment of the stock value of the company is wrong, which leads to the loss of the investors in the transaction. Mainly includes three kinds of behavior: false record, misleading statement, Major omission. A false record is an act, as of a fictitious fact, to be recorded in an information disclosure document. Misleading statement, a statement that makes an error in the disclosure of an investor and has a significant impact on its investment behavior. A major omission means that the disclosure of information is not disclosed or disclosed in part only. It is understood that prior to 2003, investors for false statements caused by the loss of the channel for civil compensation, the court is not admissible in such cases. Until January 9, 2003, the Supreme Court issued a judicial interpretation on the trial of several provisions of the civil compensation cases caused by false statements in the securities market, which opened the door of the investor's lawsuit of civil compensation for misrepresentation. Since then, the local courts have accepted and concluded a number of listed companies due to false statements of civil compensation cases. There are media statistics, from 2001 to the end of June 2011, about 10,000 investors have made false statement civil compensation cases plaintiff, involved in the prosecution of about 1 billion yuan. Among them, about 50 listed companies that were punished or sanctioned for misrepresentation were sued. The trademark false statement civil compensation case has oriental electronics (000682, stock bar) case, Yin Guang xia case, Kelon Electric case, daqing Friendship case, the Czech Republic shares (002021, stock bar) case, CSRC statement (600477, stock bar) case, ecological agriculture (former Lantian shares) case. It is noteworthy that Shili in the media interview, also proposed to prosecute the purple Xin Pharmaceutical industry responsible for the possibility of senior executives. Shili said that the SFC was punished by 8 people, and the litigation plan at least the first two senior executives should be included in the defendant. Guo So-and-So although the former legal person and chairman, but he is still the actual control of listed companies, but also have the corresponding compensation capacity, if the company's actual control and the real responsibility to the compensation, before the rights and interests of the small shareholders will be much less worried. In addition, the company's current legal representative and Cao surname executives should also be responsible, so that senior executives bear joint and several liability is also in line with the current investor protection direction. Article 69th of the Securities Act stipulates that "the issuer, the prospectus issued by the listed company, the method of raising the corporate bond, the Financial accounting report, the listing report document, the annual report, the interim report, the provisional report, and other information disclosure information, have false records, misleading statements or significant omissions, Which causes investors to suffer losses in securities trading, the issuer and the listed company shall be liable for compensation, and the issuer, the directors, supervisors, senior managers and other persons directly responsible, as well as the sponsors and the Securities companies underwriting, shall bear joint and several liability to the issuer and the listed company, butIf the issuer, the controlling shareholder of the listed company or the actual controlling person has the fault, the issuer and the listed company shall bear the joint and several liability for compensation. "The problem company hides the Thunder point" in recent years, the SFC has been strengthening the information disclosure of listed companies, information disclosure violations of the investigation and enforcement efforts are very large. In the opinion of the legal profession, the case of the false statement of the purple-Xin pharmaceutical industry is a typical example of the listed companies concealing the related transactions and hurting the investors ' interests. Take a look at the whole story to help investors "mine" in future investments. The sanctions issued by the SFC show that the main source of this penalty is the 2010 Annual report of the existence of information disclosure violations, it was not in the "2010 Annual reports" and the disclosure of Jilin Yanbian Yao Yu Ginseng Trade Limited Liability company, Yanbian Jin Hui Ginseng Trade Limited Liability company, Yanbian Xin Xin Ginseng Trade Co., Ltd., Tonghua Wei Cheng Ginseng Trading Co., Ltd., Tonghua Jia Hee Ginseng Trading Co., Ltd., Tonghua Zhen Hao Ginseng Trading Co., Ltd., Jilin Zhengde Pharmaceutical Co., Ltd. and related transactions. constitutes a false record, misleading statement or major omission in the report submitted by a listed company referred to in regulation 193th of the Securities Act. For the above-mentioned behavior of the purple Xin Pharmaceutical industry directly responsible for the Guo Chunsheng, other directly responsible personnel for Cao Enhui, Zu Chunchang, Inginron, Plum, Fang Yong, Han Ming, Xu Jifeng. According to the media in August 2011, these affiliated companies are the most popular in the 2010 and 2011 years of growth in performance. 2010, the Purple Xin Pharmaceutical industry to achieve revenue 640 million yuan, an increase of 151%, the realization of net profit of 173 million yuan, a large increase of 184%. In the first half of 2011, the Purple Xin pharmaceutical performance more eye-catching, the year to achieve revenue of 370 million yuan, net profit of 111 million yuan, year-on-year growth of 226% and 325% respectively. Echoing the results, the shares soared. From the second half of 2010, the beginning of the year, the purple Xin pharmaceutical industry soared 300%. The 2010 Annual report of the Purple Xin Pharmaceutical industry, Sichuan flat large Biological Products Co., Ltd. is the first major customer, a total of 70.6858 million yuan procurement of products, accounting for the total revenue of 11%; Bozhou Herbal Pieces Factory is the second largest customer in the 2010, For its contribution to business income of 68.906 million yuan, accounting for the total revenue of the purple medicine 10.73%; Jilin Zhengde Pharmaceutical Co., Ltd. is the third largest customer in 2010, which contributed 61.13 million yuan to the company's revenue. But the follow-up company Self-Examination report shows that the company's first three major customers have a relationship with the company. In addition, the company also with Yanbian Yew-Yu Ginseng Trade Limited Liability company, Yanbian Jin Hui Ginseng Trade Limited Liability company, Yanbian Xin Xin Ginseng Trading Co., Ltd., Tonghua Wei-cheng Ginseng Trading Company, Tonghua Jia-hee Ginseng Trading Co., Ltd., Tonghua Zhen Hao Ginseng Trading Co., Ltd. and other companies have related relationships and related transactions, These companies have a crucial role to play in the growth of the LAC pharmaceutical industry. For the above undisclosedRelated transactions, the SFC, in accordance with the provisions of article 193th of the Securities Act, to order the purple Xin Medicine industry to correct, give its warning, and a fine of 400,000 yuan, the direct responsibility for the above acts, including the original chairman of the company, general manager Guo Chunsheng, 8 senior executives, and respectively, 30,000 to 100,000 yuan fines. According to this calculation, the purple Xin Pharmaceutical industry and its 8 executives have been fined 710,000 yuan. In fact, the question of the purple-Xin pharmaceutical industry is more than the above has been settled. From January 9, 2012 to 12th, the purple Xin Pharmaceutical industry three consecutive days trading. Then, January 12, the company issued a notice of the stock change, announced the possible causes of the company's stock price fluctuations. January 9, the company Dong Zhong Yunshan to buy 99,700 shares per share of 7.01 yuan. At the same time, the company also disclosed that the company's board of Directors December 30, 2011 received some directors, supervisors and senior management notice, based on the company's current development and future development, The proposed total amount of 4.5 million-5 million yuan funds in one months through the Shenzhen Stock Exchange securities trading system to buy the company's shares. January 12 and 17th, 7 senior executives, including chairman Cao Enhui, bought more than 500,000 shares. Since then the purple Xin Pharmaceutical stock volume soared, up to 13.99 Yuan, the rally before the start of the 6.79 yuan per share of the minimum price rose more than 100%. Capital markets have a theme called "Overweight concept", that is, executives and large shareholders to buy shares in the company, which is seen as a positive market. Investors tend to buy stocks as a result. However, it is strange that, in the purple Xin Pharmaceutical Executives Group shares to start the rally, the original holding of the purple-Xin pharmaceutical institutional investors have been selling. More coincidentally, at this point, their holdings of additional restricted shares is just lifted. At the end of 2010, the purple Xin pharmaceutical industry to 20.05 yuan per share of the issue price, to Jilin Changbai Mountain Equity Investment Management Co., Ltd., Societe Generale Global (340006, fund bar) Fund Management Co., Ltd., Taiping Asset Management Limited, Century Cosmetic Care Products Co., Ltd., Tianjin Silicon Valley Paradise, investment Fund Partnership, The natural Yang Fu Army has issued nearly 500 million shares. May 23, 2011, the Purple Xin Pharmaceutical industry to implement every 10 shares Shang 10 shares, their shareholding cost reduced by half, for 10.025 yuan per share. by December 29, 2011, the investor's shareholding had been lifted. Comparing the 2012 quarterly with the end of 2011 shareholder changes, it was found in the first quarter after the high share price, the organization was a clearance or large scale. Among them, Societe Generale Global Fund Management Co., Ltd. and Taiping Asset Management Co., Ltd. all empty; Tianjin Silicon Valley paradise reduced 13 million shares, only 3 million shares; the Changbai Mountain Equity Company sold most of its holdings, and a century of cosmetic care products company and the natural person Yang Fu Army also sold accordingly. Such a "coincidence" seems unusual in the industry, with securities lawyers saying that while there is no direct evidence of the motives and intentions of executives buying shares, if the regulatory market in the US is, such problems will be subject to the SFC's strict investigation.