Caixin Explains: What China’s First Securities Class-Action Lawsuit Means for the Stock Market

Long-suffering shareholders of indebted Kangmei Pharmaceutical Co. Ltd. (600518.SH), who lost money to 88.6 billion yuan ($ 13.9 billion) in fraud, got closer to compensation after two court rulings in the last three weeks.

On November 12, a Guangzhou court ruled the country’s first securities class action lawsuit, ordering Kangmei to pay 2.46 billion yuan to more than 50,000 shareholders who lost money as a result of massive corporate fraud.

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