DLA Piper has formed a China securities litigation rapid response team to advise companies and senior management affected by the dramatic recent increase in litigation and government investigations directed at Chinese companies listed in the US and Hong Kong.
PRC-based issuers, including several that listed by means of reverse shell mergers, have been subject to investigations by the Financial Industry Regulatory Authority (FINRA) and Securities and Exchange Commission (SEC) in the US, and the Securities and Futures Commission (SFC) and Hong Kong Monetary Authority (HKMA) in Hong Kong. (See Capital Punishment.)
These investigations have been followed by a wave of class-action and derivative lawsuits. As well as the issuers, the underwriters of reverse mergers and IPOs have also been named and sued in many of these actions.
The new team consolidates the firm’s capabilities into a single group which will help clients to protect themselves against potential litigation and, if required, provide immediate and aggressive defence against any allegations, investigations or lawsuits. The team offers advice on pre-litigation crisis management; securities class actions; shareholder derivative actions; internal investigations; FINRA, SEC, SFC and HKMA investigations; delisting; directors and officers insurance; and other related matters.
Team members are based in mainland China, Hong Kong and the US. Some previously worked in the SEC’s enforcement division, or are former prosecutors. Beijing-based partner Sammy Fang is a member of the team.
