| Whether inducing the U.S. securities class action, the theory and thepractice have been heated debate, some scholars advocate theintroduction of the U.S. securities class action. The number ofinfringement act in security market is increasing continuously in China,but the small and medium investors have no idea. This is contrary toChina s civil compensation litigation purposes. The aim of civil actionis to make the best of legal mechanism to encourage those investors beinginfringed win compensation, and thus mobilize the initiative of thosesmall investors and institutional investors to join in the supervision insecurity market, which will ensure the healthy development of themarket.Firstly, this paper made a related presentation of the progress anddevelopment of the securities class action in the United States, andanalyzed contingent fee rule, as well as by two cases: Santo's securities litigation and the RIDGEWOOD energy case, to explain the contingentfee rule in practice. Domestic securities markets in protecting small andmedium investors exist certain defects, it is necessary to induce the U.S.contingent rule, which should be made a practical reference andapplication.The first chapter introduces the origin of the U.S. securities classactions, as well as the previous Rules of Civil Procedure changes, whichmake a brief analysis of a system, and China can use the U.S. contingentfee rule for reference.The second chapter introduces the two typical cases of U.S.: Santo'ssecurities litigation and the RIDGEWOOD energy case. The contingentfee rule used in these two cases, a large number of small and mediuminvestors saved the loss, and it also gave a wake-up call to other company.The third chapter analyzes that the domestic stock market protectssmall and medium investors for defects, and believe that it is necessary toinduce the U.S. contingent fee rule, which is beneficial to improve thedomestic stock market, and make a protection mechanism for small andmedium investors. |
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