Research On The Lawsuit Of IPO Information Disclosure Of China Company Listed In The United States

Initial Public Offering （IPO）information disclosure is such an exercise, theCompany managers announce the information which related to the securities issuanceaccurately, truly, completely and timely in the Initial Public Offering. It is the basiclink in all the securities disclosure system. For the investors and the whole society,IPO information disclosure plays a very important role in many aspects, such asboosting the investors’ confidence to the securities (stork) market, safeguarding theinterests of investors to some extent, improving the operation method of the listedcompany, and of course guiding the direction of investment, promoting goodsecurities market in the end.IPO information disclosure system of China has experienced the process fromabsence to perfection since the reforming and opening up, now China has alreadyformed a relatively rich and complete legal system which be based on the laws andadministrative regulations, we also have many departmental regulations and judicialinterpretations to act as the supplement.However, China IPO information disclosure system has faced many problemsduring the development process, especially for the overseas listing, IPO informationdisclosure problems are more serious. Because of national policy, many Chinese IPOinformation disclosure illegal cases can avoid the judicial procedure, and then damagethe legitimate rights and interests of investors. So many Chinese people neglect theillegal information disclosure, that is not good at the healthy development of thesecurities market.More and more Chinese companies listing on overseas stock markets under thebackground of internationalization of securities market, especially in the United States.In such an advance, perfect market, the China listing Corporation informationdisclosure management ability can not satisfy market’s requirements. In ten years,China Companies which listed in the United States’ stock market, the biggest problemto be faced active responding early, negative responding medium-term, passivereconciliation last. There are many reasons to contribute.First, the conflict of interest among the securities group litigation participants.Including the original contradictions, which means the contradictions between the defendants, especially the Company management layers; the derivedcontradictions,which means the conflict of interest between the plaintiff and lawyer.Secondly, the risk of losing force the defendant to the reconciliation.Finally, the management ability of IPO information disclosure of ChinaCompany is insufficient. The main problems are the information disclosuremanagement of listed overseas far away from rule-of-law, and the companymanagement personnel neglect, avoid the legal system of information disclosure.China Company securities group litigation is not always settled throughconciliation, so some practice is worth to affirmation and development. But we shouldpay more attention and discussion to the strategies.First, developing the actively practice of IPO information disclosure of ChinaCompany, tightening up the management and bear brave.Continue to improve the information disclosure management ability, includingimprove the risk consciousness of securities group litigation, truly, exactly, andcompletely disclosure the IPO information.Finally, the Chinese government should formulate relevant laws. China shouldimprove the country law on IPO information disclosure, the government should inputthe legal culture, which in line with China’s condition and the world, to the companyin the establishment. Confirming the investor’s independent right of prosecution assoon as possible, increasing the civil liability consequences, and accelerating theconstruction of relevant legal system.