A Case of Assistance in a Claim for Damages | Defending Against a Class Action for Damages by Investors

The client is a domestic securities company, and an issue arose during the process of selling structured products to some retail investors.

Although the level of financial understanding and investment experience differed among investors, it was pointed out that the individual explanation regarding the product structure and the possibility of loss had been insufficient.

Some investors filed a class action for damages on the basis of unexpected losses.

Although the client had faithfully complied with its internal procedures and product sales regulations, there were instances in which an employee failed to fully explain matters to investors during some consultations, and the investors interpreted this expansively as the responsibility of the company as a whole.

Accordingly, the client requested help from a corporate specialist attorney in order to respond to the class action for damages.

The corporate specialist attorney closely analyzed the client's investor guidance materials, product explanation records, and internal training and review processes.

Through this, the attorney proved that the company had complied with the legal and institutional procedures at each stage, and organized materials capable of supplementing any procedural gaps or omitted parts.

Through this, the attorney provided assistance to clearly demonstrate that the company as a whole had sufficiently operated investor protection mechanisms.

In order to calculate the amount of damages, the corporate specialist attorney went beyond a simple analysis of the loss amount and comprehensively reviewed the product structure, the market environment at the time of investment, and the investors' state of information reception and decision-making process.

Through this, the attorney proved that the losses resulted from individual investors' own decisions and market factors, and developed substantive reasoning to ensure that liability for damages would not be unnecessarily expanded.

In addition, reflecting the characteristics of each investor and the circumstances of contract conclusion, the attorney established a strategy to reasonably calculate the scope of legal and practical liability.

When a matter becomes embroiled in a mis-selling dispute, a systematic response should be carried out from the early stages of the case, and the following approach is specifically required.

In mis-selling cases, the circumstances of each investor and the structure of the product are complex, making it difficult to accurately determine the scope of legal liability and the magnitude of the damages.

Therefore, it is important to systematically prepare evidence collection, a review of the scope of liability, and a strategy to defend against the compensation amount with the assistance of specialists.

Our firm has formed a TF of attorneys specializing in finance who have handled cases in the financial field over many years, and it provides practical assistance such as evidence collection, review of the scope of liability, and the design of a strategy to defend against the compensation amount.

If, as in the above case, you are facing litigation and need legal assistance, please feel free to request help at any time through a 🔗Legal Consultation Booking.