Although the US capital markets are the first choice for many Chinese firms raising capital, there are increasingly more US-listed Chinese companies being sued in American courts for allegedly supplying prospectuses and statements that contain incorrect or misleading information.
So far this year, there have been more than a dozen Chinese companies involved in class actions and the number is growing, according to O’Melveny Myers, a US law firm.
The lawsuits are alleging a variety of complaints ranging from overstatements in companies' financial results and earnings prospects, to failure to reveal historic revenue and companies' operating assets to not giving clear warnings on...
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