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Posts Tagged ‘shareholder class action’

The Korea Times reported today that South Korea’s first ever class action has been given a preliminary approval to move forward, as a local court selected a private equity fund as representative plaintiff.  According to the article, the suit is the first filed under a South Korean securities class action law that was passed in 2005.  The use of the class action device in a shareholder lawsuit reflects that South Korea doesn’t just recognize class actions as a tool to combat public protest (see previous CAB entries dated August 29September 8, and November 3, 2008).

For more on today’s story, see this entry from Securities Docket.

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As we welcome in the first full business week of 2009, two news sources have recent stories discussing trends in securities class action litigation from 2008. 

First, the Wall Street Journal Blog reports that 2008 saw an increase in securities class action filings.   However, the article also notes that suits actually dipped in the second half of the year, despite the drastic worsening of the credit crisis.  A possible explanation offered for this trend is the impact of market volatility and the more general market decline following the credit crisis in obscuring or watering down the effects of individual acts of alleged securities fraud.  The article also touches on the prospect of a decline in securities class actions as the pool of potential defendants in the financial-services sector is exhausted.

Meanwhile, this article from The Australian published this report on a surge in class action filings Down Under during the past year.  The article includes an intersting discussion about the role of litigation funders in class action litigation Down Under and predicts a possible showdown  over licensing requirements between the country’s only licensed litigation funder and potential overseas competitors.

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