Recently, several cases of compensation for fund managers' failure to fulfill their obligations of due diligence and diligence, and arbitration cases of fund investors against fund managers for compensation of their investment capital have been fully won by Beijing King&Capital Law Firm's attorneys, Ms. Li Jing and Ms. Wang Li (interns). The Shenzhen International Arbitration Commission (SIAC) not only supported the investor's investment principal, but also the investor's attorney's fee and arbitration fee paid by the investor due to this case were fully supported.

This case is a typical case of investment failure in the primary market due to the manager's failure to fulfill its management obligations, in which the investor invested RMB 550 million in the underlying enterprise, of which the investment scale of the fund involved was 49 million, and the enterprise was valued at RMB 1.3 billion after the investment. From the surface, the fund manager to raise funds through the capital increase into the subject enterprise, and agreed on the terms of the bet, after the enterprise mismanagement shut down, the market risk led to the fund investment failure. The actual situation for the fund manager investment that is clear that the subject enterprise financing is in order to return its previous high debt, more than 500 million financing into the subject enterprise in a moment that is returned to the financial institutions of the arrears of the enterprise's operating capital of only 2 million yuan, due to the lack of liquidity, the enterprise can only shut down, and the enterprise shut down, the manager continues to be quarterly, annual false fund management report, misleading investors, the expiration of the fund is to continue to mislead investors, the fund. After the maturity of the fund, the manager continued to mislead investors by issuing false fund management reports on a quarterly and annual basis.

This case took more than one year from the early stage of the case to win the arbitration. Before initiating arbitration, whether to pursue the fund manager's responsibility for diligence or to pursue the subject enterprise's real controller's performance compensation responsibility, according to the upcoming litigation costs and the possibility of subsequent implementation of the payback, the contractor lawyer to the investor recommended the choice of the program for the fund manager's management responsibility; after initiating arbitration, the fund manager made every effort to organize the investors' conference, invited the subject enterprise's real controller to answer questions, and lured the investors to sign the "share transfer agreement". Some investors signed the Share Transfer Agreement and so on, with the intention of proving that the fund did not lose in order to interfere with the normal judgment of the arbitration, the contractor lawyer not only acted for the arbitration case, but also participated in the investors' conference, and talked with the real controller of the subject enterprise, and got the key evidence in it. In the end, a favorable award was obtained in this case. The successful representation of this case not only highlights the professional ability and strength of King&Capital in representing the fund primary market investment field cases, but also more investors to save the loss, many investors have highly evaluated and recognized the work of the legal team.