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This paper argues that U.S.-style class action would provide greater protection to the investor in France by acting in tandem with public enforcement as a deterrent and by increasing investor confidence. The first part describes the pros and cons of American-style class actions and the second part examines the prospects of introducing such a procedure into the French legal system. The French government proposed a bill in 2006 limited to consumer class action which was criticized as too benign. The author is of the opinion that a fully fledged class action would be beneficial to French markets arguing that a procedural mechanism covering both investors and consumers would increase investor confidence, benefit capital markets, mitigate manager/owner agency costs and promote greater disclosure and better corporate governance practices in France.
About the author
Jihan R. Khattar is a practicing lawyer with the law firm Khattar Associates in Beirut. She holds a Bachelor's degree in Business Administration from the American University of Beirut, a Bachelor's degree in Law from Saint Joseph University in Beirut and an LL.M. from Harvard Law School with a concentration in Corporate Law and Governance.
