The investment service center supported the litigation case ” Yunnan Luoping Zinc&Electricity Co.Ltd(002114) ” and won the judgment of Kunming intermediate people’s court in the first instance

On December 27, the reporter of China Securities Journal learned from the CSI small and medium-sized Investor Service Center (hereinafter referred to as the Investment Service Center) that recently, the investment service center supported the litigation case of Yunnan Luoping Zinc&Electricity Co.Ltd(002114) (hereinafter referred to as Yunnan Luoping Zinc&Electricity Co.Ltd(002114) , stock code 002114) misrepresentation civil infringement dispute in the first instance, which won the judgment of Kunming intermediate people’s Court (hereinafter referred to as Kunming intermediate people’s court), and the compensation proportion of investors was 70%. This is the first litigation case supported by the investment service center in the judgment of Kunming intermediate people’s court.

On June 20, 2018, people’s daily pointed out that the disposal of Yunnan Luoping Zinc&Electricity Co.Ltd(002114) 100000 tons of lead containing waste residue was ineffective. The next day, the Ministry of ecology and environment issued a follow-up report on the shocking environmental pollution of listed companies by the bureaucracy of Qujing municipal Party committee and government, Yunnan Luoping Zinc&Electricity Co.Ltd(002114) environmental pollution has attracted extensive attention.

Yunnan Luoping Zinc&Electricity Co.Ltd(002114) as a local state-owned resource listed company, it completely ignored the social responsibility of environmental protection. After the first round of feedback from the central environmental protection inspector in 2016 pointed out that it had environmental pollution problems, it did not make effective rectification, or even pretended to make rectification and perfunctory rectification. On June 12, 2018, the sixth environmental protection supervision group of the central government sank in Qujing City and found that the problem of heavy metal pollution of the company not only has not been solved, but also has an aggravating trend, causing serious damage to environmental safety.

After the people’s daily issued the document, Shenzhen Stock Exchange urgently issued a letter of concern to inquire whether Yunnan Luoping Zinc&Electricity Co.Ltd(002114) has other environmental protection problems, whether the company’s production and operation environmental pollution information and relevant environmental protection problems are truly, accurately and completely disclosed. On June 22, 2018, Yunnan Luoping Zinc&Electricity Co.Ltd(002114) announced that it had received the notice of case filing and investigation from Yunnan regulatory bureau of CSRC. On September 15 of the same year, Yunnan Luoping Zinc&Electricity Co.Ltd(002114) announced that it had received the decision on administrative punishment. The administrative punishment found that the company had two illegal acts: first, it omitted to disclose the rectification and disposal of 100000 tons of lead containing waste residue in multiple periodic and interim reports; Second, it omitted to disclose the administrative punishment of its subsidiaries by the work safety and environmental protection regulatory authorities. Yunnan Luoping Zinc&Electricity Co.Ltd(002114) and 20 relevant responsible persons were administratively punished.

Adhering to the concept of “chasing the worst”, the investment service center supported the investor Feng to file a lawsuit against Yunnan Luoping Zinc&Electricity Co.Ltd(002114) and the then chairman of the company Yang Jianxing, and appointed lawyer Yan Yan of Shanghai Hansheng law firm as the litigation agent. In May 2019, Kunming intermediate people’s court filed a case to accept Yunnan Luoping Zinc&Electricity Co.Ltd(002114) support litigation, and officially held a hearing in July of the same year. After more than two years, investors recently won the first instance judgment.

While determining that the Yunnan Luoping Zinc&Electricity Co.Ltd(002114) infringement was established, the court found that Yang Jianxing was the main planner and organizer of the omission of disclosure in the periodic report, and was mainly responsible for the omission of disclosure in the interim report. He was the supervisor of the person directly responsible. His behavior of not disclosing the information due to the company’s major administrative punishment seriously violated the obligations of loyalty and diligence, Shall bear joint and several liability for compensation. After verification of systemic risk, the court ruled that the compensation proportion of investors was 70%.

So far, the investment service center has filed 46 supporting lawsuits. Next, the investment service center will continue to deepen the practice of securities support litigation, actively promote the “support litigation + model judgment” mechanism, explore and innovate securities public interest litigation, earnestly implement the normalization of representative litigation, enrich the judicial practice of shareholder subrogation litigation of insurance institutions, improve the practice of securities civil compensation, and help build a standardized, transparent, open, dynamic A resilient capital market.

(China Securities Journal · China Securities Network)

 

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