• Germany: New Investors' Joint Action Act
  • November 3, 2005 | Authors: Stefan Kugler; René Lochmann
  • Law Firm: Reed Smith - Munich Office
  • A new law, the Investors' Joint Action Act (hereinafter referred to as "KapMuG" or the "Act"), came into force completely in Germany on November 1, 2005. Basically, the KapMuG enables the joining of causes of actions among individual investors for compensation on the basis of false, misleading or omitted public capital market information (such as contents of a prospectus, publication of directors' dealings, or information (to be) given in general meetings, in financial statements or in takeover bid documents within the meaning of the WpÜG). The Act will have relevance for securities issuers as well as for asset managers.