US Lawsuit Alleges Chinese Firm’s Scheme to Profit from Stock Market Maneuvers

US Lawsuit Alleges Chinese Firm’s Scheme to Profit from Stock Market Maneuvers
Employees work on the production line of a herbal medicine company in Bozhou City, Anhui Province, China, on April 8, 2013. VCG via Getty Images
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A recent U.S. class-action lawsuit claims that a Chinese medical firm has misled U.S. and other investors, leading to significant financial losses.
Wuxi PharmaTech (Cayman) Inc. was previously publicly listed on the New York Stock Exchange (NYSE). But after the firm decided to go private, shareholders were persuaded to sell their stocks at $46 per American Depositary Share (ADS), without being told that the company would return to market less than two years later with an IPO (initial public offering) at a much higher valuation. Effectively, stockholders lost more than $21.1 billion in total, the lawsuit alleges.
Nicole Hao
Nicole Hao
Author
Nicole Hao is a Washington-based reporter focused on China-related topics. Before joining the Epoch Media Group in July 2009, she worked as a global product manager for a railway business in Paris, France.
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