Research On US Securities Class Action Institution And Using For China's Reference

The US Securities Class Action Institution virtually referred to the application of Federal Rules of Class Action to the field of securities fraud. Being a mode of litigation of resolving group disputes, it made a start from England Equity Rules and has its unique social impact and characteristics. The fundamental policy goals of securities class action mechanism not only lie in the individual damages, but also in the reforms of some rules and regulations in certain fields and pursuing litigation economy and judicial efficiency.The basic principles established by the Federal Rule 23 amended in 1966 are still the substance of securities class action procedure. The securities class actions have played an important role in settling securities fraud disputes, stopping deceptive and illegal securities practices and safeguarding investors' rights. Class action lawsuits are an important and valuable part of US legal system when they permit the fair and efficient resolution of legitimate claims of numerous parties by allowing the claims to be aggregated into a single action against a defendant that has allegedly caused harm. It maintains social stability, economizes judicial cost and enhances judicial efficiency.As the saying goes, going too far is as bad as not going far enough, and things will develop in the opposite direction when they become extreme. The US securities class actions manipulated by some lawyers have revealed some drawbacks. In order to restrain the lawyer-driven litigation and prevent the meritless actions, develop what is useful and discard what is not, the US Congress has continually promulgated three laws to improve the Securities Class Action Institution and re-evaluated its positive role and negative influence.Currently, the US-style securities class actions had attacked the Chinese CorporationsResearch on US Securities Class Action Institution and Using for China's Reference Abstractlisted in NYSE. Studying and handling such securities class actions has become an imminent practical problem for China's Corporations listed overseas. China's civil securities actions have started, and the efficient civil procedure mechanism must be established. After a thorough analysis of the main obstacles that restrain China's adoption of US-style Securities Class Action Institution, the author points out that we can draw some useful experience from certain relevant US institution designs to improve China's Representative Action mechanism.