[Direct answer]In the Beijing area, there are four conditions: the person subject to the obligation of information disclosure makes false statements (overstating performance, concealing major events, or omitting important information); you buy the shares after the implementation date; you still hold or sell the shares after the disclosure date or the correction date; and there is a causal relationship between the losses and the false statements. After the new judicial interpretation in 2022, claims are no longer subject to the precondition of administrative punishment—the defendant can file a lawsuit even if they have been punished, criminally prosecuted, or admitted to fraud on their own, but they must be able to identify "significant" evidence in the lawsuit.

I. Problem background and typical scenarios

The exposure of financial fraud in listed companies has led to a continuous plunge in their share prices, causing huge losses for investors who bought at high prices—in the compensation groups, people are constantly asking, "Do I meet the eligibility criteria?" and "Should I wait for the CSRC's punishment notice?" Civil compensation for false statements is a well-established channel for securities protection, but the rules regarding the compensation window, the timing of transactions, and the calculation of losses directly determine whether a lawsuit can result in actual financial compensation.

II. Key points of dispute

First, three key time points: the implementation date, the disclosure date, and the reference date. Second, the determination of materiality. Third, the presumption and exclusion of transaction relatedness and causality. Fourth, the evidentiary path without administrative penalties.

III. Professional analysis by Henglue Lawyers

The first layer defines three key dates: - **Implementation Date**: The date when the false statements were made or occurred (e.g., the date of recording fraudulent revenue or concealing material information). - **Disclosure Date**: The date when the false statements were first publicly exposed (e.g., through in-depth media reports, regulatory announcements, or the company’s own correction announcements), and the stock price fully reflects this disclosure. - **Correction Date**: The date when the correction announcement is made. - **Reference Date**: The date after disclosure or correction that determines the cutoff for calculating investment losses (e.g., when cumulative trading volume reaches 100% of the tradable shares). - Buyers who purchase after the implementation date and hold until after the disclosure date fall into the claim window. These three dates serve as navigational markers. The second layer focuses on materiality: - The false statements must constitute a material event under securities law (e.g., earnings fraud, undisclosed major guarantee litigation, or regulatory violations by controlling shareholders). - Under the 2022 regulations, defendants may raise the defense of insufficient disclosure, which courts assess based on the nature of the violation and its impact on trading decisions. - Regulatory penalties provide strong but not exclusive support for determining materiality. The third layer addresses causality and defenses: - Buyers after the implementation date and holders or sellers after the disclosure date are presumed to have a causal link with the losses. - Defendants may rebut this presumption by proving that losses were due to systemic risks or the company’s own operational factors. - Losses are calculated using the investment difference method (average purchase price minus reference price multiplied by shares) plus commissions, stamp duties, and interest. Detailed calculations serve as foundational evidence for negotiations and judgments. The fourth layer clarifies evidentiary requirements for administrative penalties: - The new judicial interpretation eliminates the pre-litigation administrative penalty requirement. Investors may sue directly based on the listed company’s self-correction announcements, audit "non-standard" opinions, case filing notifications, criminal judgments, or media investigations and public evidence. - However, the burden of proving "materiality" shifts to the plaintiff, requiring higher evidentiary standards (regulatory letters, company announcements, third-party verification reports). - Cases with existing penalties progress faster. The fifth layer offers practical advice: - The three-year statute of limitations begins from the disclosure or correction date (or the date of actual knowledge). - First, verify whether your transaction records align with the claim window; avoid filing outside the window. - Monitor model judgments and class actions (especially representative litigation) to streamline legal processes. - Review settlement offers against estimated damages: reject clearly subpar offers and seek explanations.

IV. Practical suggestions and legal basis

The first step is to verify the transaction time and the three-day time window. The second step is to fix the transaction records and the evidence of the announcement. The third step is to calculate the investment gap loss. The fourth step is to evaluate whether to join a class action lawsuit or file an individual lawsuit. The main legal basis: Articles 85 and 89 of the Securities Law of the People's Republic of China, Articles 4 to 11 and Articles 24 to 32 of the Supreme People's Court's Several Provisions on the Trial of Civil Compensation Cases for False Statements in the Securities Market; the specific application shall be subject to the currently effective provisions.

5. Henglue Law Firm's Advice

Three key points of false statement claims: buying after the implementation date, disclosing the damage after the disclosure date, and the three-day period as the claim map; the cancellation of preliminary procedures does not mean that the burden of proof is relaxed, and you need to prepare all the key evidence yourself; the three-year statute of limitations starts from the disclosure date or the correction date, and class actions and model judgments are efficient channels. Those involved in securities claims can proceed through the following channels:\nFinancial capital and cross-border transactions involving foreign entities.We provide a comprehensive solution for services, which can be integrated into the compliance of listed companiesIntellectual property protection and corporate lawFor plates related to the enforcement of compensation, you can refer to the following information for reference.Creditor's rights and debts, and enforcementFor columns related to special rights protection, you can seek advice from usSpecial servicesTeam.

VI. Frequently Asked Questions

Q1: Can I still sue even if the China Securities Regulatory Commission doesn't impose any penalties?

Yes. In 2022, the new judicial interpretation abolished the preliminary administrative punishment procedure. Based on evidence such as the announcement of case filing, the announcement of correction, and the audit non-standard opinions, one can directly file a lawsuit, and the burden of proof for the seriousness of the case shall be borne by the plaintiff.

Q2: Can I get compensation if I sold the product before the disclosure date?

Generally, this is not the case. Only investors who still hold or sell the securities after the disclosure date or the correction date fall within the scope of the claim; if the investor has sold all the securities before the disclosure date and has not suffered any losses, it is difficult to establish a causal relationship between the two events.

Q3: How is the loss calculated?

The investment spread method: the difference between the average purchase price and the benchmark price multiplied by the number of shares held, plus commissions, stamp duty, and interest; systemic risks and other parts are removed proportionally.

Q4: How much will the systemic risk deduct?

The court determines the exclusion ratio based on the deviation between the overall market and the fluctuations of the industry index and the stock price trend. Due to significant differences in individual cases, multiple sets of data are used for cross-validation during the estimation process.

Q5: When does the time limit start to count?

After three years, starting from the date when the plaintiff knows or should have known that his rights have been infringed (in practice, the disclosure date or the correction date is often referred to), the right to win the lawsuit will expire and be lost.

The above answer is based on the judicial practice in Beijing. The adjudication standards in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Financial capital legal services·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.