Hunan Tianyi Science and Technology Co., Ltd announced that it had received an indictment and relevant law documents from the People’s Court of Changsha City. Four investors accused the company of making false statements, and asked for a compensation of 78, 429 RMB, including the legal fees. Relevant directors and high-ranking executives of the company may be added as defendants.

Chen Jianping and three other investors have accused the company of providing false stock information, contrary to relevant regulations of the China Securities Regulatory Commission. They claim the company should pay for their losses. The People’s Court of Changsha accepted the case on 12 Sep, and Hunan Tianyi Science and Technology Co., Ltd had made necessary preparations for the lawsuit. The company announced that other investors might also go to court.

According to some legal parties, there are more than 40 investors who lost money due to what they claim was false information provided by the company. They claim approximately 28,078,429 RMB in lost investment. It is reported that Hunan Tianyi Science and Technology Co., Ltd, and some directors of the company, will receive administrative punishments from the China’s Securities Regulatory Commission for false information in its 2003 Annual Report, 2004 Annual Report and other important events.