ZhongYin Wins A Major Case of PE Investment Exit
Author： Zhong Yin Law Firm
As entrusted by the action representatives of the investors of a private equity fund, the team led by Wu Zetao of ZhongYin Law Firm represented the investors on a major case of PE investment exit before Jinan Railway Transportation Intermediate Court, and won the case. The fund involved in this case is a contractual fund, which has no legal entity as a vehicle, and there are very few successful cases where investors directly claim relevant rights and interests against the fundraiser, instead of the manager, so this case is difficult. After unremitting efforts, the team finally convinced the court of first instance, who supported most of the plaintiff's claims of, among others, equity repurchase amounts, overdue interests, liquidated damages, attorney’s fees, and property preservation fees. Winning this case has added the experience conducive to contractual fund investors to safeguard their rights and interests through a derivative action. Senior Partner Wu Zetao was in charge of and Associates Peng Xinzhen, Jin Yu, and Su Dan acted as lead attorneys on this case.
ZhongYin Law Firm is one of the first law firms proposing the concept of “capital market dispute resolution” and one of the law firms starting to provide legal services for capital market dispute resolution early in China. Relying on the extensive practice experience accumulated in the area of capital market dispute resolution and the global network of top professional lawyers in the capital market, we have built a team focusing on practicing in this area and established a Capital Market Dispute Resolution Research Center.
Wu Zetao is the director of the center. His team is composed of a number of senior partners/partners, associates, and paralegals, and is one of the largest capital market dispute resolution teams in China. Since its establishment, the team has participated in many major litigation and arbitration cases in the capital market, and has represented large state-owned enterprises, multinational companies, listed companies, banks/trusts/funds, and other financial institutions on many cases before the Supreme People’s Court, higher people’s courts, intermediate people’s courts, the Beijing Arbitration Commission, the China International Economic and Trade Arbitration Commission and other courts and arbitration institutions, achieving good results. Moreover, he has published nearly a hundred articles and papers on capital market dispute resolution, and books such as the Practical Analysis on Legal Issues in Investment Banking Business of Securities Companies and the Dispute Resolution in China's Capital Market: Frontier Issues and Legal Practice.