13 ASIAN LEGAL BUSINESS CHINA • 亚洲法律杂志-中国版 WWW.LEGALBUSINESSONLINE.COM/CHINA COVER STORY relevant intermediaries, have been listed as co- defendants. In some cases, “parties acting in concert for misrepresentation” have also been sued. More and more plaintiffs claim misrepresentation by defendants based on their own analysis, dramatically increasing the pressure on securities intermediaries to respond to lawsuits. “For example, the first-instance judgment on Dalian Machine Tool Group Corporation, the first national case of disputes over misrepresentation on the interbank bond market, has provided useful guidance for the application of law to disputes on the interbank bond market. The judgment has, for the first time, concluded that misrepresentation was committed through judicial audit procedures, and accurately determined the boundaries of liabilities of the plaintiff and the defendant by creatively examining the degree of fault of institutional investors themselves.” This case has been selected by the People’s Court Daily as one of the Top Ten Cases of People’s Courts in 2023. There is also the SNTON bond judgment handed down by the Qingdao Intermediate People’s Court, which is the first ever judgment that determines the loss caused by misrepresentation in bond issuance should be investment difference rather than the face value of the coupon principal and interest, and that the impact of systematic and non-systematic risk factors should be discounted appropriately according to judicial interpretations and specific case circumstances, making it an extremely groundbreaking judgment. The firstinstance judgment was also entered for the securities misrepresentation case of LETV, which to date has the highest claims amount in China’s securities litigation history. That judgment accurately determined the liabilities of 24 defendants, including various intermediaries, directors, supervisors and senior management personnel. Further, the case of “Sino Essence”, the first lawsuit involving a special representative of a STAR Market-listed company, was concluded through mediation, making it China’s first securities class action settlement and providing innovative ideas for protecting investor rights and interests. Zhou has been involved in some major cases herself. “For example, I represented a video technology company in a securities misrepresentation lawsuit. This is the first securities misrepresentation lawsuit in China that is filed against institutional investors on the non-public offering market. We creatively proposed that the judicial interpretations on misrepresentation should not apply to the non-public offering market, and ultimately own court support.” This case is significant as an example and has material influence on the market. Zhou has also represented a network technology company in dealing with disputes over misrepresentation of forecasting. “This is the first lawsuit in Born To Lead BEIJING | SHANGHAI | SHENZHEN | CHENGDU www.glo.com.cn
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