Former legislator Luo Fuzhu and others were accused of hyping up the shares of Jixiang Global and killing retail investors. 319 investors sought compensation of more than 72.03 million yuan from Luo Fuzhu and others through the insurance center. The Supreme Court rejected the appeal and determined the deductible.

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[Reporter Zhang Wenchuan/Taipei Report] Former legislator Luo Fuzhu and others were accused of hyping up Jixiang Global stock and killing retail investors. Unwilling to lose, 319 investors sought compensation from Luo Fuzhu and others through the Securities Investors and Futures Traders Protection Center More than 72.03 million yuan, the first instance, second instance, and further first instance found that although Jixiang Company’s financial report did not disclose the transactions of Luo Fuzhu and other related parties, the stock price did not fluctuate significantly after the related party’s transactions were reported by the media, and it was impossible to confirm that the investors were affected. In case of damages, Luo et al. were judged to be exempt from compensation; the Supreme Court dismissed the appeal and determined the exemption.

The special investigation team of the Supreme Prosecutor's Office determined that Luo Fuzhu and others had speculated on the stocks of Jixiang Global, swindled retail investors, and made illegal profits of more than NT$840 million, of which NT$400 million was suspected to be remitted to China. In 2011, Luo Fuzhu was prosecuted for violating the Securities and Exchange Act. Fuzhu, and several auspicious directors.

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During the trial at the Taipei District Court, Luo Fuzhu was accused of speculating in Guihong's stock and evading taxes in another case. He was sentenced to 4 years in prison. Luo fled to China on the eve of his imprisonment. December.

319 investors filed a civil lawsuit through the Securities Investors and Futures Traders Protection Center (referred to as the Insurance Center), claiming that Luo Fuzhu concealed the transactions of related parties, causing investors to misbelieve Jixiang's false financial reports. Until June 2011, when the media exposed his After the financial report was false, the stock price suffered setbacks before he realized that he was deceived, so he claimed more than 72.03 million yuan from Luo Fuzhu and others.

Both the first instance and the second instance of the court ruled that the Insurance Center lost the case, and the Supreme Court rejected it and sent it back to the High Court for a new first instance.

The judgment of the first instance on December 7, 2021 found that although the financial report of Jixiang Global Company did not disclose the transactions of Luo Fuzhu and other related parties, Jixiang Company had announced the transaction information on April 30, 2008, and stated the transaction The amount, the investor knows that Jixiang is disposing of the relevant real estate for 480 million yuan. After the media reported the transaction news of the related person on June 3, 2011, Jixiang’s stock price fluctuated mixed, and there was no significant fluctuation, which cannot prove that the investor suffered a loss. , so the insurance center still lost the case.

The Supreme Court held that the judgment of the first instance was correct, rejected the appeal of the insurance center and the investor, and settled the case.