[straight news network Beijing June 21 News] (direct blog network) Los Angeles Law360 website in 2016 February 26 at 10:11 (EDT) released as a new company agreed to pay $47 million to settle a shareholder to sue skin care products of multi-level marketing information. According to documents issued by securities regulators on Friday, the shareholders believe that these suppliers have misled investors about the legitimacy of the product in China.

According to the U.S. Securities and Exchange Commission announced the settlement, such as the new agreed to pay $47 million to compensate for those who buy new stocks during the period May 2011 to January 2014, such as the new stock. In addition, such as the new also said that the compensation by the insurance company to bear, and thus does not affect the company's earnings.

According to this document, the proposed transaction needs to be approved by the court, but it is not recognized as such as the existence of such a new company. On Thursday, the parties withdrew their request for a level of certification. According to the records of the federal court of Utah, they have reached an agreement in principle and will be requested by the court for the next few weeks.

Representatives of the parties did not respond immediately to the request on Friday.

If approved, the deal will be completely finished in January 2014 lawsuit. The lawsuit accused as a new company to conceal its operations in China is contrary to the laws of the people's Republic of China.

The complaint claims that Provo, a Mainland Company in the state of Utah (largely dependent on the Chinese market), points out that sales are rising in the Greater China region, but it also conceals the fraudulent sales and illegal activities.

China's people's daily, the mouthpiece of the ruling party in China, issued a report in January 2014. Which pointed out that such as the new business violated the Chinese law, it is suspected that it is an illegal pyramid schemes.