The Issue Of Causation. Civil Liability For Misrepresentation In Research

One of the fundamental purposes of securities law is to protect the interests of investors. The first Article of the Securities Act of China also established the purpose of "protect the legitimate rights and interests of investors" .However, cases of false statements in China's stock market has not stopped despite repeated prohibitions. Therefore, in the stock market, when investors seek compensation for investment losses on the ground of false statements. How to prove the causation between investment loss and the misrepresentation made by the defendants has been the biggest obstacle for investors to seek civil aid, and has been a great knotty of civil responsibility system of securities.The causation of civil tort liability of false statements is the causal relationship between the false statements and the consequences of damage. Causal relations are very important in the tort liability; it is an essential element of tort liability and also the most complicated issue in the judgment of tort liability. Causation is the logic link that connects torts and damages of the tort liability.Traditionally, the theory of inevitable causal relations is advocated in the field of tort liability in our country. This theory denies the existence of occasional causal relations and other causal relations, but emphasizes the compensation for legitimate rights and interests of investors that are violated before. But in the stock market, due to the particularity of the causation of civil tort liability of false statements, the causal relations between the action of misrepresentation and the investors' loss may not be judged if theory of inevitable causal relations is used, which lead to the legitimate rights and interests of investors are not adequately protected. Therefore, the study of the causal relations of civil tort liability of false statements is of great significance.This paper mainly references the securities law of the United States to study the causal relations of civil tort liability of false statements. The full text is divided into four parts: PartⅠ: State the importance and difficulties of the judgment of the causal relations of civil tort liability of false statements, in the form of a case - Da Qing Lian Yi false statements case.PartⅡ: Introduce the rules of judge causal relations of false statements on the reference of the securities law of the United States. The judgment of the causal relations of false statements of the United States can be divided into two steps—Transaction Causation and Damage Causation. Mine while, because the requirements of prove the causal relations are different in different cases which are sued under different legal provisions, it can be also divided into causation under explicit right of appeal and implied right of appeal. While mainly focus on the rules of judge the Transaction Causation and Damage Causation under the rule of 10b-5 of the "Securities Exchange Act".PartⅢ: Firstly, analysis the characteristics and inadequate of the theory of inevitable causal relations of the judgment of civil tort liability; Secondly, state the obstacles of the judgment of the causal relations of civil tort liability of false statements; Finally, introduce the regulations concerned about causation in "the highest court's regulations regarding the cases involved civil compensation for false statements in the securities market". It also includes some comments on the laudable and improvement-needing sides.PartⅣ: On the basis of referring the beneficial experience of American law, author brings forward the suggestion on perfecting Chinese regulations.