A Conciliation Agreement Was Reached In Respect Of The Footwear Industry.

Three cases against China Honorable The Zungui Haixi Corp., Ernst & Young (Ernst & amp; Young) and equity underwriters settle the class action settlement agreement recently, which is approved by the high court of Ontario, with a total compensation of 10 million 850 thousand yuan.

The Shishi Shishi Shoes Co., Ltd., led by Fujian Shishi Cai family, led by Cai Fengyi, was honored in December 21, 2009. footwear industry In the name of the Toronto stock exchange's gem, a total of 11 million 500 thousand shares were issued, raising 39 million 800 thousand yuan. However, a series of incidents and disputes followed. In the summer of 2011, a group of investors launched a class action lawsuit against the honorable footwear industry, accusing the company of violating the Ontario Securities Law and common law.

After the approval of the court settlement agreement reached by the two defendants of the Ontario court, the class action ended, but this does not mean that the defendant acknowledges his legal liability or fault or fault, because all defendants deny the accusation.

According to the settlement agreement approved by the judge of the high court of Ontario, the honorable footwear industry will pay 8 million 100 thousand yuan, the Ernst & Young will pay 2 million yuan, and the four underwriters such as CIBC will pay 750 thousand yuan.

The plaintiff will be able to share the remaining $8 million 40 thousand after deducting the costs of lawyers and court fees and the corresponding taxes. The total cost of the class action lawyers is 2 million 250 thousand yuan, accounting for 20.75% of the total compensation.

Investors who bought the valuable footwear industry from August 11, 2009 to August 22, 2011 and investors who accepted the settlement agreement before August 7th of this year must apply before January 6th next year.

The Ontario Securities Commission (OSC) announced last summer that the chairman and chief executive of the Zungui Haixi Corp.TSXV:ZUN board of directors of China's honorable sporting goods company should be banned from entering the securities exchange in Canada. A hearing committee of OSC ruled early last year that its headquarters in China are respected. Sports goods Cai Fengyi and executive director Cai Yanda of the company and the board of directors of the company violated the Ontario Securities Law.

OSC said in its announcement: "these defendants have been and continue to violate the Ontario Securities Law, and their acts are totally not forgiven. "

The hearing committee of OSC pointed out that the honorable footwear industry did not maintain an audit committee in accordance with the law, nor did it submit the audited annual financial report on time. OSC's investigation also found that the chairman of the honorable footwear industry, chairman Cai Fengyi and executive director Cai Yanda, allowed the above violations to happen, and did not cooperate with the survey of the honorable company audit committee and a special committee.

OSC also permanently prohibits Cai Fengyi and Cai Yanda as directors and administrative officials of any listed company in the province, and orders them to pay a hearing fee of $63 thousand and 667.