On the evening of January 17, Shanxi securities (002500) announced that Sino German securities, the holding subsidiary of the company, received a civil complaint served by the Beijing Financial Court on January 13. The cause of action was a dispute over the liability for Securities Misrepresentation. Two thousand plaintiffs including Shanghai Junying asset management partnership (limited partnership) filed a civil lawsuit against LETV and other 21 defendants to the Beijing Financial court, requiring LETV to compensate for the investment loss of 4.571 billion yuan caused by its misrepresentation, and requiring the other 20 defendants to bear joint and several liability. Sino German securities is one of the 21 defendants and is required to bear joint and several liability. According to the announcement, on April 2, 2021, the China Securities Regulatory Commission issued the decision on administrative punishment ([2021] No. 16), which determined that LETV had violations of laws and regulations, and imposed administrative penalties on LETV, Jia Yueting and other 14 natural persons. In this lawsuit, the plaintiff, as an investor of LETV, held that LETV's misrepresentation caused damage to its rights and interests, and asked LETV to bear civil liability for misrepresentation infringement; Jia Yueting and other 14 natural persons shall be jointly and severally liable for false statements; Three securities companies including Sino German securities and three accounting firms are jointly and severally liable for failure to exercise due diligence and fail to find the financial fraud of LETV. The plaintiff asked LETV to order LETV to pay the plaintiff infringement compensation for investment losses caused by false statements (including investment balance loss, stamp duty, commission and interest), totaling 4571357198 yuan. Twenty defendants other than LETV shall be liable for the above losses of the plaintiff, and the defendants shall jointly bear all litigation costs of the case. The announcement said that since the case has not been heard, it is impossible to judge the impact on the company's profits in the current period or after the period. (Xinhua News Agency)