Chinese IPO Suits Driving Securities Actions: Report

Law360, New York (July 26, 2011, 12:03 AM EDT) -- Securities class actions related to Chinese reverse mergers boosted the amount of litigation in the first half of 2011 even as the number of credit crisis-related cases petered out, according to a report released Tuesday.

Consulting firm Cornerstone Research found in its report, Securities Class Action Filings — 2011 Mid-Year Assessment, that investors filed 24 federal securities class actions against Chinese companies that went public through the reverse merger process, making up 25.5 percent of the 94 total cases filed in the first six months of...
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