The case of Hyundai Investment and Securities Co.
This case is an action for damages in which 1,483 investors have brought against the Prudential Investment & Securities Co. (new share issuer) and Samil Accounting Corporation (evaluator of the paid in stocks). In January of 2000, the investors participated in the public offering of the paid in capitals, and subsequently suffered a loss of 32.5 billion won (entire amount of investment). In February of 2010, the Supreme Court ruled in favor of the plaintiffs, upholding the judgment of the Appellate Court. The Appellate Court had ordered the defendants to pay a total sum of 12.2 billion won as compensation, in which the liability of Samil Accounting Corp. was limited to only 10% of the total investment. Accordingly, the plaintiffs were able to recover close to 20 billion won, an amount that included both the principal and interest.\n\nThis case is a rarity in that the court has recognized the issuer’s liability of compensation for the reason that a company unlisted on KOSPI or KOSDAQ has made misstatements in filling out the document furnished to the public with respect to its public offering. It can be considered the first class action that the court recognized the liability of compensation of the accounting firm that had evaluated the value of the stocks for the reason that the evaluation of the unlisted company was incorrect.