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Yongan Forestry Sues Four Former Executives for 32.76 Million Yuan
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On September 23 evening, Yongan Forestry announced it has filed a lawsuit against four former executives, including former directors Su Jiaxu, Chen Songbai, Chen Zhenzong, and Wu Jingxian, seeking 32.7645 million yuan in compensation. The lawsuit stems from a 2021 Fujian Securities Regulatory Bureau decision that found the company's 2016 and 2017 annual reports contained false financial data. The bureau fined the company 500,000 yuan and imposed individual fines on the four executives totaling 1 million yuan. Subsequently, Yongan Forestry was sued by investors for securities misrepresentation liability, and the Fujian Higher People's Court ordered the company to pay 31.7255 million yuan in compensation, which it has already paid. The company now seeks to recover these losses from the former executives, including the regulatory fines, investor compensation, and litigation costs. The case has not yet been heard, and its impact on the company's current or future profits remains uncertain.
Source report
On the evening of September 23, Yong'an Forestry announced that it has filed a lawsuit against four former executives, seeking compensation for losses incurred due to fraudulent financial reporting.
Background of the Defendants
According to the announcement:
- Su Jiaxu – Former director of Yong'an Forestry, former chairman of Fujian Senyuan, and former shareholder of Fujian Senyuan
- Chen Songbai – Former general manager of Yong'an Forestry and former general manager of Fujian Senyuan
- Chen Zhenzong – Former chief financial officer of Yong'an Forestry and former CFO of Fujian Senyuan
- Wu Jingxian – Former chairman of Yong'an Forestry
Regulatory Penalties
On August 18, 2021, the Fujian Securities Regulatory Bureau issued an "Administrative Penalty Decision" against Yong'an Forestry, finding that the company's annual financial reports for 2016 and 2017 contained false records. All four defendants were identified as executives directly responsible for the violations.
Based on the facts, nature, circumstances, and social harm of the violations, the Fujian bureau imposed the following penalties:
- Yong'an Forestry: Warning and a fine of 500,000 yuan
- Su Jiaxu, Chen Songbai, and Chen Zhenzong: Warnings and fines of 300,000 yuan each
- Wu Jingxian: Warning and a fine of 200,000 yuan
Investor Lawsuits and Compensation
Subsequently, Yong'an Forestry was sued by investors over securities misrepresentation disputes. The Fujian Provincial Higher People's Court issued a final judgment ordering the company to pay 31.7255 million yuan in compensation to the plaintiffs. The company has already paid this amount.
Current Legal Action
In its announcement, Yong'an Forestry stated that it has filed a lawsuit with the court, requesting that the four defendants jointly compensate the company for losses totaling 32.7645 million yuan, comprising:
- Fine: 500,000 yuan
- Compensation payment: 31.7255 million yuan
- First-instance litigation costs: 269,500 yuan
- Second-instance litigation costs: 269,500 yuan
Risk Warning
The announcement noted that the case has not yet been heard in court, and the impact on the company's current or future profits remains uncertain.
Source: Mass Securities Daily (Original source: Mass Securities Daily)
Source
东方财富网-公司资讯Eastern
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Yongan Forestry sues four former executives for 32.76 million yuan over false financial data