A Chinese financial data providing company along with JP Morgan and UBS, which were the bookrunners of its initial public offering, have been sued for not disclosing an executive's alleged securities violations.

The lawsuit charges that the prospectus of China's Xinhua Finance Media's $300m (€222m) flotation did not disclose that Shelly Singhal, its former chief financial officer, was a banker and stockbroker at Bedrock Securities, which the complaint alleged was under a cease-and-desist order from NASD.