The problem with HK's class actions proposals

Author: | Published: 1 Dec 2009
Is a door being opened to spurious investigation of prospectuses

The plans, which were announced on November 5, propose to introduce multi-party litigation, or class actions.

Of particular importance is the proposal to allow for contingency fees, third-party litigation funders and public financing. This would mean all three of the major tools used to fund class actions would be available in Hong Kong.

“If people have their grievance then they should be entitled to their day in court. But are we opening a door whereby a drop in share price will invite people to start...