Research On The Plaintiff System Of Securities False Statement Public Interest Litigation

With the vigorous development of the economy in China,the domestic securities market,an emerging field,is in a stage of booming.However,in recent years,infringements on investors' rights and interests have become increasingly serious in China's securities market.Some listed companies and stock exchanges have induced investors to make decisions,which are contrary to their true wishes,through improper records,misleading records,and major omissions to make false statements about market transaction information,damaging their economic interests and severely disrupting the order of financial markets.The typical feature of false statement cases in the securities market is small amount but large scale,that is,a wide range of stakeholders with small single amount,but a large total amount of cases involved.In addition,small and medium investors are mostly individuals,distributed in various provinces and cities across the country,and lack the awareness and realistic conditions of collaborative rights protection.At the same time,no matter in terms of professional knowledge or economic strength,the victims of false statement cases are in an unequal position with the listed companies,stock exchanges and other professional institutions that carry out false statements.A considerable number of small and medium investors are afraid of factors such as disparity in litigation strength,high litigation costs,and long cycles,and are too lazy to protect their legal rights through judicial channels.In order to effectively resolve group disputes caused by securities false statements,it is necessary to introduce a securities public interest litigation system.The core of China's securities public interest litigation construction lies in establishing the plaintiff's lawsuit mechanism.As for the construction of the specific plaintiff system,we can learn from the current practice of securities group litigation,such as the chief plaintiff system in the US class actions,the operation mode of the investor protection center in Taiwan group lawsuits,and the China Securities Securities Investment Corporation Consumer Service Center supports the mechanism of litigation.The plaintiffs in China's public interest litigation are limited to relevant agencies and social organizations,and do not recognize the model ofnatural persons suing on behalf of the public interest.In the plaintiff mechanism in securities public interest litigation,the ownership of plaintiff qualifications should follow specific principles and conditions.Not all agencies and organizations engaged in securities business can be called eligible plaintiffs in securities public interest litigation.Only if it meets the requirements of securities public interest litigation and the statutory formal requirements can it be qualified for prosecution.After the plaintiff's qualification is confirmed,a series of corresponding supporting systems are needed to support the operation of the plaintiff mechanism for securities public interest litigation.Corresponding mechanisms such as the requirements for the subject to initiate litigation procedures,the burden of litigation costs,the basis for the plaintiff's claim for damages,the relationship between the outcome of the lawsuit and the plaintiff,and the investor shall comply with the corresponding mechanisms for protecting investor rights and saving judicial resources to establish a position to better serve the work of helping investors safeguard their rights and interests.