X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.


A Chinese court has ruled that Shanghai-based AllBright Law Offices shared civil liabilities on a bond default for due diligence failure as an intermediary.

The Chinese law firm was ordered to compensate investors RMB37 million ($5.7 million) after two bond offers issued by Zhejiang-based Wuyang Construction Group Co. Ltd. defaulted. In its decision on China’s first class action litigation related to false statements in bond issues, the Hangzhou Intermediate People’s Court held that intermediaries, including law firms, were liable for damages caused by the issuer’s misrepresentation of its financial status and ability to repay.

“The issuer used falsified financial statements to gain eligibility and the underwriters and intermediaries failed to perform due diligence. They severely hurt market credibility and disturbed market orders, infringing upon investors’ lawful rights and interests,” the court said.

This premium content is reserved for
Law.com International Subscribers.

BENEFITS OF A SUBSCRIPTION INCLUDE:

  • Customized news by region including UK, Asia, Europe, Latin America, Middle East, Africa, and North America
  • Cutting-edge research such as UK Top 100, China 45, and Asia 50
  • Get the inside track on the biggest breaking stories that delve deep into the issues behind the headlines
  • Comprehensive coverage of the dynamic legal market from people moves to the major international jurisdictions
  • Global view into how legal tech, business of law, in-house and regulatory environments are intersecting worldwide

Already a subscriber?

Anna Zhang

Anna Zhang is the Hong Kong-based Asia Bureau Chief for Law.com International. She writes about lawyers and legal issues across Asia. Her coverage includes the business of law, global and domestic law firms, in-house legal departments and regulatory issues. She can be reached at [email protected]

Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

Takeovers FreezeoutsBook

Takeovers Freezeouts addresses important legal developments concerning topics such as: Sarbanes-Oxley, reducing vulnerability to hostile takeovers, specific responses to...

Get More Information
 

The British Legal Awards 2021Event

Celebrating achievement, excellence, and innovation in the legal profession in the UK.

Get More Information
 
 

Law.com International Newsletters & Briefings

Sign Up Today and Never Miss Another Story.

Sign up for an unlimited number of complementary newsletters, alerts, and International Briefings. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 American Lawyer Media International, LLC. All Rights Reserved.