All
| TITLE | Supreme Court Decision 2008Da92336 Decided August 19, 2010 [Damages] [full Text] |
|---|---|
| Summary | |
| [1] The meaning of the day which he/she knew of the fact under Articles 186-5 and 16 of the former Securities and Exchange Act, which is the time when the statutes of limitation starts to run, in a case where a person who acquires securities but has sustained losses due to false description in the business report exercises a damages claim right against the corporation and its directors as a submitter of the business report under Articles 186-5 and 14 of the former Securities and Exchange Act [2] Whether persons who can claim damages under Article 186-5 and 14 of the former Securities and Exchange Act include not only those who acquire the securities at the issuance market by subscription or sale, but also those who acquire them at the distribution market (affirmative) [3] With regard to establishment of liability for damages under Articles 186-5 and 14 (1) of the former Securities and Exchange Act, which entity bears the burden of proof as to whether an acquirer of the securities knew about a false description or representation of any material fact, or an omission of a description or representation of such a material fact in the business report at the time of acquisition (=company denying liability for damages, etc.) [4] In a case where a share acquirer claims for compensation for a loss sustained by false representation in the business report against the stock-listed corporation, which entity bears the burden of proving causation between false representation in the business report and the occurrence of the loss(=a stock-listed corporation, etc.) and the method of proving absence of causation... | |
