Economic Analyses in Securities Litigations
30 November 2009
By Makoto Ikeya, Satoru Kishitani, and Yaye Nakano
Securities litigation in Japan has been increasing in recent years; however, because there are a limited number of precedents, the methodologies for establishing damages in securities litigation are far from established. The purpose of this book is to introduce US experiences and economic issues to be considered in securities litigation in Japan, and to promote discussions in the legal community about how to address damages issues.
Chapter 1 describes historical trends in securities litigation in the US, including current trends based on statistics summarized by NERA's US offices, and looks at the recent increase in subprime-related litigation.
Chapter 2 analyzes trends in securities litigation in Japan. The authors analyze litigation trends in terms of category, industry, and amount of damages, and reveal that misstatement cases have increased since 2005, while the majority of earlier litigations had been broker-customer cases.
Chapter 3 describes issues in disclosure and damages. Reliance, loss causation, materiality, and other issues under Japanese law are discussed from the point of view of economics. The basics of market efficiency theory, as well as critiques of the theory, are described, along with a discussion of the implications of these discussions for Japanese cases.
Chapter 4 explains the event study methodology and other methods that can be used to prove and estimate damages and to judge materiality. Limitations in event studies are also discussed.
Chapter 5 provides a courtroom perspective on these issues through several case studies, including Seibu Railway and Livedoor, which are landmark misstatement cases in Japan.
Economic Analyses in Securities Litigations was published (in Japanese) by ChuoKeizai-Sha Inc., November 2009, and can be ordered through www.amazon.co.jp for JPY 3600 + tax.
For more information, please contact:
Akiko Mori, Marketing Specialist, Asia
+81 3 3500 3298
akiko.mori@nera.com
