A Public Choice Analysis of Securities Fraud Class Action

• Main Authors: Hao-I LIN, 林浩懿
• Other Authors: Hsin-Ti Chang
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/26185114099043360689

碩士 === 國立臺北大學 === 法律學系法律專業組 === 102 === Recently, the calculation of damages in securities fraud class action litigation has become increasingly important precisely because the issue remains debatable after the Supreme Court’s Dura Pharmaceuticals decision. It indicates that a plaintiff cannot prevail on the merit, and therefore, recover damages merely by establishing causation through proving that the misstatement inflates the price of a security at the time of purchase even though a direct link between the fraud and the loss is absent. Instead of ex ante loss rule or phantom loss, its argument is in favor of the ex post loss rule. This dissertation explores the implication of rational choice theory, public choice theory, and social choice theory. It also explains its importance in the economic analysis of financial law, especially in the field of securities litigation which can be regarded as a sort of coordinated game. This dissertation concludes that the economic analysis of law can shed new light on the current debate over the securities fraud class action.