Kangmei Pharmaceuticals, one of China’s largest Chinese medicine makers, has been ordered to pay its 50,000 investors $385 million as compensation for their losses on their company’s stock. The matter marked closure to the country’s first-ever securities class action.
The public hearing was held in July after 11 investors sued Shanghai-listed Kangmei for falsifying its disclosures. Between 2016 and 2018, Kangmei inflated its revenue by $4.1 billion. It also inflated cash positions and its operating profits.
