scholarly journals Old Wines in New Bottles? Private Securities Litigation in China’s New Securities Law

Amicus Curiae ◽  
2021 ◽  
Vol 2 (2) ◽  
pp. 169-187
Author(s):  
Ding Chen
Keyword(s):  
Stock Market ◽  
Judicial Independence ◽  
Class Action ◽  
Primary Reason ◽  
Securities Litigation ◽  
Non Profit ◽  
Organization Model ◽  
Securities Law ◽  
Action System

Private securities litigation has been very weak since the establishment of China’s stock market some 30 years ago. A new law on securities took effect in March 2020 and introduces some reformist changes to this area. This article will examine the likely effect of the new Securities Law on this form of litigation. In particular, it will examine China’s most celebrated ‘quasi-class action’ system, i.e. Special Representative Litigation. This procedure is borrowed from Taiwan’s non-profit organization model. The essay argues that, since the new Securities Law has made only limited efforts in addressing the primary reason for the weak private securities litigation, namely, lack of judicial independence, it is unlikely to make any significant changes to private securities litigation in China. Keywords: private securities litigation; securities law; class action; cost of litigation; judicial independence.

scholarly journals The Effects of Securities Class Action Litigation on Corporate Liquidity and Investment Policy

2015 ◽  
Vol 50 (1-2) ◽  
pp. 251-275 ◽  
Author(s):  
Matteo Arena ◽  
Brandon Julio
Keyword(s):  
Investment Decisions ◽  
Market Value ◽  
Corporate Investment ◽  
Class Action ◽  
Investment Policy ◽  
Capital Expenditures ◽  
Litigation Risk ◽  
Securities Litigation ◽  
Corporate Liquidity ◽  
Temporal Effects

AbstractThe risk of securities class action litigation alters corporate savings and investment policy. Firms with greater exposure to securities litigation hold significantly more cash in anticipation of future settlements and other related costs. The result is due to firms accumulating cash in anticipation of lawsuits and not a consequence of plaintiffs targeting firms with high cash levels. The market value of cash is lower for firms exposed to litigation risk. Corporate investment decisions are also affected by litigation risk, as firms reduce capital expenditures in response. Our results are robust to endogeneity concerns and possible spurious temporal effects.

Rethinking the Relationship Between Public Regulation and Private Litigation: Evidence from Securities Class Action in China

2018 ◽  
Vol 19 (1) ◽  
pp. 333-361
Author(s):  
Robin Hui Huang
Keyword(s):  
The United States ◽  
Class Action ◽  
Public And Private ◽  
Securities Law ◽  
Recent Developments ◽  
Public And Private Enforcement ◽  
The Relationship ◽  
The U.S

Abstract China has a civil procedure for collective litigation, which is dubbed Chinese-style class action, as it differs from the U.S.-style class action in some important ways. Using securities class action as a case study, this Article empirically examines both the quantity and quality of reported cases in China. It shows that the number of cases is much lower than expected, but the percentage of recovery is significantly higher than that in the United States. Based on this, the Article casts doubt on the popular belief that China should adopt the U.S.-style class action, and sheds light on the much-debated issue concerning the relationship between public and private enforcement of securities law. The Article also discusses the future prospects of securities class action in China in light of some recent developments which may provide its functional equivalents, including the regulator-brokered compensation fund and public interest group litigation.

Taking Stock of the Collective Proceedings Regime in the Competition Appeal Tribunal—A Successful Compromise?

2020 ◽  
pp. 107-132
Author(s):  
Stephen Wisking ◽  
Ruth Allen
Keyword(s):  
Competition Law ◽  
Class Action ◽  
Action System ◽  
The Us ◽  
The Uk

This chapter considers the UK collective proceedings regime for damages claims in respect of competition law breaches, which was first introduced in 2003 and significantly broadened in 2015. The regime aims to balance a desire to facilitate redress for victims of competition law infringements against the risk of frivolous or unmeritorious litigation (and the perceived excesses of the US class action system). By reference to the approach taken in the collective claims brought before the Competition Appeal Tribunal (CAT), this chapter examines how that balance has been struck in practice, and whether it can be said to be a successful compromise.

Cigna Settles with Health Care Providers

2004 ◽  
Vol 32 (1) ◽  
pp. 177-180
Author(s):  
Michael Chu
Keyword(s):  
Health Care ◽  
Managed Care ◽  
Health Care Providers ◽  
Class Action ◽  
Care Providers ◽  
High Quality ◽  
Quality Health Care ◽  
Non Profit ◽  
Quality Health ◽  
High Quality Health Care

On February 2,2004,U.S. District Judge Federico Moreno issued the final order and judgment authorizing a settlement between the HMO CIGNA Healthcare and the physicians who treated patients covered by CIGNA, ending the companys involvement in the larger class action In re Managed Care Litigation, which stil includes eight other HMOs. The settlement, estimated by plaintiffs experts to be worth 1.3 billion, mandates changes in the companys business and disclosure practices, establishes a non-profit foundation dedicated to the promotion of high quality health care, and guarantees at least 70 million in payments to the physicians. Similar in scope to the settlement approved between the physician class and Aetna Healthcare in October 2003,the settlement could potentially set a new standard for transparency and physician involvement in billing practices; however, much depends on the outcome of the remainder of the class action, which is set to go to trial later this year.

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