Puli Pharmaceutical Faces Investor Compensation After First-Instance Court Victory in Fraud Case

Deep News
05/19

Investors who suffered losses can register their claims through the relevant platform. A recent batch of favorable judgments has been received by a legal team. Previously, the Haikou Intermediate People's Court issued a first-instance judgment in the securities misrepresentation liability dispute case against Puli Pharmaceutical, ordering the company to compensate investors for their losses. This case stems from the company receiving a penalty decision from the China Securities Regulatory Commission (CSRC) on March 21, 2025, for severe financial fraud that triggered mandatory delisting due to major violations. The company officially exited the A-share market in April 2025.

According to the judgment, investors who purchased shares between April 26, 2022, and April 16, 2024, and sold or continued to hold them after April 17, 2024, incurring losses, are eligible to register for compensation.

Given the first-instance victory, subsequent similar cases are expected to proceed to judgment more quickly. The statute of limitations for this case has not yet expired, allowing affected investors to check if they fall within the eligible claim period and participate in recovering losses.

According to the announcement, the CSRC determined that the company inflated revenue and profit by fabricating sales of finished drugs and active pharmaceutical ingredients and accounting for trade business using the gross method. Calculations show the company's falsely recorded operating revenue for 2021 and 2022 totaled 10.31 billion yuan, accounting for 31.08% of the total annual operating revenue disclosed for those two years. The falsely recorded total profit amounted to 6.95 billion yuan, representing 76.72% of the total annual profit disclosed for the same period. The CSRC decided to order the company to make corrections, issue a warning, and impose a fine of 10 million yuan, with relevant responsible persons also receiving penalties.

Investors who participate in the claim will need to wait patiently. Although Puli Pharmaceutical's stock has been delisted, investors' right to claim compensation is not affected. The CSRC has clearly stated that it will legally assist eligible investors who suffered losses due to the listed company's financial fraud in protecting their rights.

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