Court gives green light for Stark shareholder class action lawsuit
Case represents first such lawsuit involving ordinary stock securities
The Southern Bangkok Civil Court has granted permission for a class action lawsuit to proceed against Stark Corporation Pcl on behalf of a group of aggrieved common shareholders.
The move on Wednesday marks a significant development in Thailand's legal landscape, as it represents the first class action lawsuit involving ordinary stock securities since the amendment of the Code of Civil Procedure in 2015.
The lawsuit, designated as Case No. 1061/2024, was initiated by the Thai Investors Association on behalf of five plaintiffs who represent a broader group defined as "individuals who bought or sold shares of Stark Corporation on the Stock Exchange of Thailand between May 11, 2021, and June 16, 2023". The court's order automatically binds all members of this group who share the same factual and legal circumstances.
This decision opens the door for a larger group of investors potentially harmed by Stark's actions to seek collective legal recourse. The outcome of the case involving the five initial plaintiffs will be automatically binding on the broader class.
Role in supporting victims
The investors association said it is playing a central role in assisting victims of the alleged Stark misconduct by facilitating the class action process and disseminating information to affected investors. This includes:
- Issuing two official announcements in 2024 (No. 1/2024 on September 19 and No. 2/2024 on November 12) detailing the progress of the case.
- Maintaining a dedicated section on the association website (www.thaiinvestors.com) under the "Class Action" menu.
- Email communication with registered victims.
- Collaborating with relevant capital market agencies and media outlets to ensure public awareness.
The defendants in the case retain the right to appeal the court's decision. This class action represents the first step in a potentially lengthy legal process aimed at achieving justice for Stark's shareholders who may have suffered financial losses.
The Securities and Exchange Commission stepped in to suspend trading in the shares of the company which was engaged in the cable manufacturing industry, seized the company's assets, and brought fraud charges against its executives for alleged falsification of financial statements.
