Originally published July 2011
A sharp drop in the number of litigations and damages amounts
awarded over misstatements has occurred, while broker-customer
litigation has reached a record high.
Introduction
This report is an update for 2010 of Japanese trends in
securities litigation, using statistics from 1998 through the end
of 2010. Following the resolutions of large
cases—including Livedoor and Seibu
Railway—involving many individual and institutional
investors, the number of judgments related to damages litigation
over misstatements has decreased substantially to seven in 2010
from 14 in 2009. On the other hand, the number of regulatory
actions by the Securities and Exchange Surveillance Commission
(SESC) regarding monetary penalties for misstatement has increased
to a record high of 12 in 2010 from nine in 2009. Although the
resolutions of large cases resulted in a sharp drop in the amount
of litigation in 2010, the potential for future misstatement
