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Issuer Liability for Misstatement in IPO Prospectus
Retail Investor Class v IPO Issuer + Lead Underwriter
Composite summary — not a single reported case. This entry distils a settled line of Thai Supreme Court (Dika / ฎีกา) authority for legal education. It is not a transcript of one reported judgment, and the heading is not a citable case number. Do not cite it as specific case law — consult a Thai-qualified lawyer for the authoritative Dika number and current application.
Facts
Retail investors claimed losses arising from material misstatements about the issuer's customer concentration in the IPO prospectus.
Legal Issue
Whether the issuer and underwriter are jointly liable for prospectus misstatements, and the threshold for materiality.
Holding
Supreme Court has affirmed joint liability of issuer and underwriter for material misstatements in the prospectus, with materiality assessed against the reasonable retail-investor standard.
Reasoning
Securities and Exchange Act §82 imposes prospectus accuracy obligations; the Consumer Protection Procedure Act framework supports class redress mechanisms.
Significance
Underwriter due-diligence rigor is essential; class-action capability strengthens private enforcement.
Practical Takeaway
Lead underwriters should document due-diligence rigorously; issuers should err toward fuller disclosure.
Cited Statutes
- Securities and Exchange Act B.E. 2535 §82, §85
- Consumer Protection Procedure Act B.E. 2551
This entry summarises a representative line of authority from the Thai Supreme Court (ฎีกา). It is intended for general legal education only and is not a substitute for advice from a Thai-qualified lawyer. Individual Dika case numbers are being verified against primary sources; until then these entries are presented as composite doctrinal summaries.
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