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| TITLE | Supreme Court Order 2015Ma4027 Dated November 4, 2016【Motion for Permission to File Lawsuits】 [full Text] |
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| Summary | |
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[1] Requirements for permission to file a securities class action by a representative party, and whether liability for damages is a matter that a court needs to examine when deciding to grant permission (affirmative in principle) Whether a court can examine an act, etc. that led to a damages claim within the scope to determine whether the requirements for permission to file a lawsuit are met as prescribed under Article 12(1)2 of the Securities-Related Class Action Act (affirmative) [2] Method of determining “the scope of the class” which is required to be indicated in a ruling on the permission to file a securities class action under Article 15(2)4 of the Securities-Related Class Action Act Where individuals (class members) purchased shares issued by a company, subject to the applicable scope of the Securities-Related Class Action Act, and then partly sold the shares during the period of damages incurred due to the company’s statutory violation but could not specify as to when the shares were acquired upon seeking damages, whether a representative party can determine the scope of the class based on his/her choice of method (affirmative in principle) Where there exist select class members who, during the period of damages incurred, partly sold their shares deposited in an account with a financial institution that accepts securities, whether the scope of the class can be determined based on the first-in, first-out method whereby the shares first purchased are first sold (affirmative) [3] Meaning of a “defendant company” under Article 12(1)2 of the Securities-Related Class Action Act [4] Meaning of “[the] legal or factual merits, as a claim for damages referred to in each subparagraph of Article 3(1), shall be common to all class members,” one of the requirements for permission to file a lawsuit, under Article 12(1)2 of the Securities-Related Class Action Act, and whether such requirement can be regarded as not being satisfied solely on the basis that there exist slightly different facts among each class member’s claim or that there exist grounds of defense among individual class members (negative) [5] Meaning of “[t]he securities-related class action shall be an appropriate and efficient means to realize the rights of the class and protect their interests,” one of the requirements for permission to file a lawsuit, under Article 12(1)3 of the Securities-Related Class Action Act |
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