More than three years after rampant fraud involving Longtop Financial Technologies first came to light, class action plaintiffs lawyers have finally scored a direct hit. But the lawyers are still far from a hoped-for payday, and a relatively meager one at that.
A federal jury in Manhattan determined Monday that Longtop’s Canadian former CFO, Derek Palaschuk, should pay damages for recklessly misleading shareholders about the Chinese company’s finances. The decision—which could put Palaschuk on the hook for more than $5 million, according to the plaintiffs—came after jurors reached a verdict on Friday that Palaschuk can’t escape liability for ignoring red flags that Longtop’s financials were a sham and failing to warn investors.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
