Core Points - Tian Sheng Pharmaceutical Group Co., Ltd. (ST Tian Sheng) is under investigation by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure laws [1][2] - The company and its controlling shareholders may face civil compensation claims from investors who suffered losses due to alleged securities fraud [1][2] - A lawyer from Shanghai Hanlian Law Firm is collecting claims from affected investors, with specific conditions for eligibility outlined [2][3] Summary by Sections Company Investigation - Tian Sheng Pharmaceutical has been notified of a formal investigation by the CSRC due to suspected information disclosure violations [1] - The investigation could lead to civil liabilities for the company, its controlling shareholders, and related parties if investors' rights are found to be compromised [1] Investor Compensation - Affected investors who purchased Tian Sheng Pharmaceutical's securities before January 9, 2025, and sold or held them afterward may register for compensation claims [2] - The final conditions for claims will depend on the outcomes of the CSRC's administrative penalties and subsequent court rulings [2] Legal Process and Requirements - The progress of civil claims may be influenced by the company's potential delisting or bankruptcy proceedings [3] - Investors wishing to register for claims must provide specific documentation, including a copy of their ID and securities transaction records [3]

Core Viewpoint - The increasing number of investor lawsuits related to securities fraud is significantly impacting the capital market, with a notable rise in successful claims and compensation amounts awarded to investors [1][2][3]. Group 1: Investor Lawsuits and Compensation - ST Xintong has reached settlements with multiple individual investors, with a total of 1,768 lawsuits filed and claims amounting to 434 million yuan [1]. - As of April 2024, ST Xintong has received 2,760 investor lawsuits, with expected compensation nearing 400 million yuan [2]. - A total of over 50 billion yuan has been awarded to investors across 45 listed companies in compensation claims since 2020 [6]. Group 2: Legal Framework and Judicial Changes - The introduction of the new Securities Law in 2020 has established a chapter on "Investor Protection," enhancing the legal framework for investor rights and reducing the burden of proof for investors [3][4]. - The 2019 "Nine Civil Guidelines" and the 2022 regulations from the Supreme People's Court have clarified the legal processes for securities fraud cases, facilitating easier access for investors to file lawsuits [3]. Group 3: Role of Regulatory Bodies and Legal Support - The China Securities Investor Services Center (CSISC) has played a crucial role in supporting investor lawsuits, particularly in high-profile cases [9][10]. - The increase in investor lawsuits is attributed to heightened legal awareness among investors, the removal of administrative penalty prerequisites, and increased exposure of fraudulent activities by listed companies [13]. Group 4: Challenges and Considerations in Legal Proceedings - There is a notable discrepancy between the amounts claimed by investors and the compensation awarded by courts, often due to the need to establish a direct causal relationship between the fraud and the investor's losses [7][12]. - The complexity of proving damages in cases of market manipulation and insider trading has resulted in fewer successful claims in these areas compared to securities fraud [13].