CHINESE REVERSE MERGERS

Krislov Law Firm Investigates Investor Losses in Chinese Company Mergers

Many China-based companies have recently been sold to U.S. investors based on false and misleading financial statements, resulting in substantial investor losses.  Many of these foreign companies got access to U.S. markets by transactions known as Chinese Reverse Mergers (CRMs).  CRMs typically involve Chinese companies who merge with U.S. publicly-traded “shell” companies, which usually have no assets but provide the access to the U.S. trading markets without having to separately register the Chinese company.  It has been widely reported that many Chinese companies involved in these CRMs have been materially misstating their financial statements which, once the truth is revealed, ultimately results in the merged company’s securities values substantially declining.

If you purchased stock or other securities in companies like these, and lost some or all of your investment, please call the attorneys at Krislov Law for a free consultation.