U.S. securities class actions against foreign companies continue to target Chinese firms
U.S. Securities Fraud Class Actions Against Non-U.S. Issuers
What’s in this report from Dechert:
Tracking with trends since 2020, the majority of non-U.S. issuer securities fraud class-actions lawsuits filed in 2022 targeted companies headquartered or principally located in China. Lawsuits against Chinese companies accounted for nearly one in three of the 34 securities class actions brought against non-U.S. entities.
Dechert’s analysis of the 34 qualifying lawsuits filed in 2022 found that 11 were against non-U.S. issuers in China, followed by the UK (six), Canada (four) and Switzerland (three), and the largest portion of the suits involved companies in the education sector.
Here are some other key findings:
- Five cases were filed against online Chinese tutoring companies alleging misrepresentations in connection with China’s regulatory requirements and/or approvals.
- Compared to recent years, 2022 saw relatively no change in the number of dispositive decisions issued in securities fraud cases against non-U.S. issuers.