Grandway Represented the Client to Complete Administrative Penalty in the Case of Suspected Information Disclosure Violation and Achieved A Successful Result

The case of some parties who were suspected of illegal disclosure of a listed company’s information and intended to be administratively punished (“the Case”), for which Grandway provided legal services, achieved a successful result.

After receiving the Prior Notice of Administrative Penalty and Market Entry Prohibition from China Securities Regulatory Commission (“CSRC”), the client engaged Grandway to provide legal services. After accepting the Engegament, our attorneys efficiently completed the work, i.e., reviewing the case file, sorting out the facts, collecting evidence and legal analysis within the limited preparation time. Taking into account the specific situation that the financial fraud is the M&A subsidiary of the listed company, the business integration and actual operation after M&A, and the information disclosure management of the listed company, our attorneys formed the defense opinion of the case in a targeted and systematic manner and represented the client to attend the administrative penalty hearing organized by the CSRC. In the end, the client were not administratively punished.

This case is an important reference for the clients in disclosure violation cases on how to engage attorneys to participate in administrative investigation at the right time, and how to present important facts of the case and organize strong evidence to the regulator more clearly and completely in the investigation stage, in order to protect their legitimate rights and interests.

In recent years, securities regulators and judicial authorities have maintained a “zero tolerance” attitude towards securities violations and have focused on combating securities violations and crimes. Demand for legal services for securities compliance and capital compliance from market participants continues to grow. Grandway has been deeply involved in the professional field of capital market for a long time, including the whole business chain of securities services such as perior administrative license, information disclosure during the process and securities compliance afterwards.