Shanghai Financial Court¡¯s Public Sentencing on the First Case of Ordinary Representative Litigation in Securities Disputes

On the afternoon of May 11, Shanghai Financial Court publicly adjudicated the case concerning disputes over liabilities for misrepresentation of securities between the Plaintiff (315 investors including Wei X) and the Defendant Shanghai Feilo Acoustics Co., Ltd. The Defendant should pay the Plaintiff compensation for investment losses totaling more than RMB 123 million, and each investor can obtain more than RMB 390,000. This case is the first comprehensive practice of ordinary representative litigation after the promulgation of the Provisions on Several Issues Concerning Representative Litigation in Securities Disputes by the Supreme People's Court, which provides a replicable sample of Shanghai Financial Court for the further promotion of China's securities class action system nationwide, and is of great significance for building a fair, efficient and convenient judicial protection system for small and medium investors.