Song Yixin, a well-known securities lawyer in China, has declared to the media that 42 listed companies may be sued by their shareholders for releasing of false statements.
During an interview with Chinese media, Song said that he is aware of 46 companies involved in issuing false statements and 42 of them are listed companies. Song stated these companies include Sanlian Commercial Company, ST Datang, and ZTE Corporation.
Under the existing laws, there are three kinds of lawsuits on securities related civil compensation, namely, false statements, insider trading, and stock price manipulation. According to Song, 46 companies can be sued for false statements, eight for insider trading, and five for stock price manipulation.
So far, there has been no response from the companies involved.
