Cooking The Books

Long-time readers of The 10b-5 Daily know that this blog has been interested in South Korea’s efforts to establish a private securities class action system. As the deadline approaches for the new legislation to go into effect, financial regulators continue to weigh the costs and benefits. In this article from the Korea Times, the governor of the Financial Supervisory Service (FSS) notes that securities class actions can be misused and discusses the prevalence of these suits in the U.S. Another article from the same paper, however, quotes a FSS official as stating: “It’s fair to say the imminent class action lawsuit has also kept companies from cooking their books.”