Chinese companies listed in the United States continue to be targets of securities fraud litigation over alleged failure to sufficiently disclose their financial dealings, according to a new report released by Dechert.
As an emerging trend in 2022, the report highlights that an increasing number of lawsuits focused on the initial public offerings of Chinese after-school tutoring companies for the misrepresentation or omission of stringent regulatory requirements by the People’s Republic of China. Tutoring companies have recently been under heightened scrutiny by the Chinese government.
