WANG HAIHONG AND OTHERS v. J.P. MORGAN SECURITIES (ASIA PACIFIC LTD) AND ANOTHER

Parties

Procedural Posture

Civil: Prospectus Misrepresentation, Negligence and Statutory Claims by Shareholders / Chambers Decision on Striking Out Application (limitation)

Legal Issues

1. 1 When do causes of action based on prospectus misstatements and related statutory provisions accrue?
2. 2 Whether the plaintiffs' claims are statute‑barred under Limitation Ordinance Cap.347 s4(1)
3. 3 Whether damage was purely contingent until the company's delisting or occurred at acquisition

Ratio Decidendi

The court held that the plaintiffs' causes of action (common law and statutory) accrued when they acquired the shares because real and actual diminution in the intrinsic value of the shares occurred on acquisition due to false or misleading prospectus information; consequently the six‑year limitation ran from each purchase date and the claims issued in 2019 were time‑barred.

Court Disposition

Plaintiffs' claims struck out as time‑barred and actions dismissed

Orders

• Claims struck out and actions dismissed
• Costs order nisi: plaintiffs to pay defendants' costs of the action including costs of the present applications and hearing with a certificate for two counsel; costs to be taxed if not agreed; order to become absolute after 14 days absent application for variation