On the afternoon of March 30, the Shanghai Financial Court opened a public hearing on the case between the plaintiff 315 investors including Wei and the defendant Shanghai Feilo Acoustics Co., Ltd. on the liability of misrepresentation relating to securities dealing. This is the first case in China that has been tried through the ordinary representative action procedure in accordance with the application of the parties since the release of the Provisions of the Supreme People’s Court on Several Issues Concerning Representative Actions Arising from Securities Disputes. Previously, more than 300 investors successfully completed the investor identity verification, rights registration and representative selection procedures online through the Shanghai Financial Court’s representative action online platform and the Securities Investor Protection Chamber. By the beginning of the trial, a total of 315 eligible investors had applied to participate in the representative action, and the total amount of litigation involved reached RMB 146 million. The case was tried by a 7-person collegiate panel consisting of three judges and four expert jurors from the professional judging committee for cases in securities business of the Shanghai Financial Court. Vice President Lin Xiaonie served as the presiding judge, and a third-party professional auxiliary support mechanism was introduced in the court hearing for the appraisal of investors’ losses. Five representatives of action appeared in court on behalf of all the plaintiffs, including two representatives who participated in the litigation online. During the trial, both the plaintiffs and the defendant fully expressed their opinions on the focal points of disputes like transaction causality, loss causality, determination of loss amount, deduction of systemic risks and other factors, as well as the reasonability of legal fees and notice fees. The smart court electronic evidence system was used in this trial, and the entire process was broadcast live on the Internet. Some plaintiffs who joined the representative action attended the court trial.
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