KN(SH:603111) Feng Huang Wang·2025-07-31 07:47Core Viewpoint - The company, Nanjing Kanni Electromechanical Co., Ltd., is currently facing a securities false statement liability lawsuit, with a recent court ruling requiring the company to compensate a total of 33.09 million yuan for damages and court fees related to the case [1][4]. Group 1: Lawsuit Background - The lawsuit stems from a 2021 administrative penalty by the China Securities Regulatory Commission (CSRC), which identified financial fraud involving Guangdong Longxin Technology Co., Ltd. from 2015 to 2017, leading to false disclosures in Kanni Electromechanical's restructuring reports [1][8]. - A total of 17 investors have filed claims against the company for securities false statement liability due to the aforementioned issues [1][9]. Group 2: Court Ruling Details - The recent court ruling (Civil Judgment No. (2022) Su 01 Min Chu 928) mandates that Kanni Electromechanical must pay a total of 33.09 million yuan, which includes 32.91 million yuan for damages and 185,117 yuan for court fees [2][3][4]. - The defendants in the case include Kanni Electromechanical and several other parties, with varying degrees of joint liability, including Guotai Junan Securities, which is responsible for 50% of the total compensation amount [4][5]. Group 3: Financial Implications - The company has already compensated 9 ordinary investors a total of 139,480 yuan as part of the ongoing legal proceedings, while the total amount claimed by all investors is approximately 383 million yuan [9]. - Kanni Electromechanical has proactively set aside 216 million yuan to cover potential compensation claims from investors, reflecting the company's strategy to manage financial risks associated with the lawsuits [9]. Group 4: Industry Context - The case highlights a broader trend in the industry where intermediary institutions, such as financial advisors, face increasing liability in securities false statement cases, with a focus on protecting investor rights and enforcing stricter penalties for financial fraud [6][5]. - The Supreme People's Court has adopted a "zero tolerance" approach towards financial fraud, emphasizing the need for accountability among all parties involved in such cases [4][6].