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.
