Nishka Srinivas Veluvali –
Published On: November 12, 2021 at 20:27 IST
The Chinese Court ruled against Kangmei Pharmaceutical Co and some of its Former executives, on Friday trouncing victory to the investors in China’s first class – action suit against the pharmaceutical Fraud.
The Ruling was declared by the Intermediate People’s Court of Guangzhou was hailed by China’s securities regulator as a “milestone” event in China’s capital markets.
As per the Ruling, Kangmei is obliged to pay 55,326 investors a sum total of 2.46 billion yuan ($385.51 million) to compensate their losses. Former Chairman Ma Xingtian and his wife along with four former executives, are responsible for paying the compensations.
Kangmei Pharmaceutical was involved in ‘intentional and systematic’ financial scam of worth 30 billion yuan ($4.60 billion) from 2016 to 2018, the China Securities Regulatory Commission (CRSC) has inferred.
The country like China which vows “zero tolerance” against such scams has orders country’s first-class action Lawsuit against Kangmei in April, 2020.
In addition to the Court’s Ruling CSRC has also launched Criminal Charges against Former Chairman Ma of Kangmei Pharmaceutical.