{"id":4583,"date":"2022-09-23T22:06:53","date_gmt":"2022-09-23T13:06:53","guid":{"rendered":"https:\/\/www.kitamuralaw.com\/?p=4583"},"modified":"2022-09-23T22:13:39","modified_gmt":"2022-09-23T13:13:39","slug":"investor-confidence-in-japanese-capital-market","status":"publish","type":"post","link":"https:\/\/www.kitamuralaw.com\/?p=4583","title":{"rendered":"Investor Confidence in Japanese Capital Market"},"content":{"rendered":"\n<p>Is the judiciary doing all it could?<\/p>\n\n\n\n<figure class=\"wp-block-gallery aligncenter has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"810\" data-id=\"4632\" src=\"https:\/\/www.kitamuralaw.com\/wp-content\/uploads\/2022\/09\/Tella-1-1024x810.jpg\" alt=\"\" class=\"wp-image-4632\" srcset=\"https:\/\/www.kitamuralaw.com\/wp-content\/uploads\/2022\/09\/Tella-1-1024x810.jpg 1024w, https:\/\/www.kitamuralaw.com\/wp-content\/uploads\/2022\/09\/Tella-1-600x474.jpg 600w, https:\/\/www.kitamuralaw.com\/wp-content\/uploads\/2022\/09\/Tella-1-300x237.jpg 300w, https:\/\/www.kitamuralaw.com\/wp-content\/uploads\/2022\/09\/Tella-1-768x607.jpg 768w, https:\/\/www.kitamuralaw.com\/wp-content\/uploads\/2022\/09\/Tella-1.jpg 1156w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Company Site<\/figcaption><\/figure>\n<\/figure>\n\n\n\n<p>A Japanese public company named &#8220;Tella&#8221; filed for bankruptcy in August. The biotech firm was created by Dr. Yuichiro Yazaki, a medical professional who promoted a new cancer immunotherapy. At the time of bankruptcy, the company&#8217;s stated capital was over 3 billion yen, and together with the capital reserve, investors had invested over 6 billion, all of which was lost.<\/p>\n\n\n\n<p>Although one member of the board was found guilty of insider trading, as the company disseminated false information about the launch of a COVID-19 product in Mexico, among others.  Nevertheless, one would wonder if the injection of capital and subsequent sales were in fact fraud.  <\/p>\n\n\n\n<p>Indeed, in a similar case of misrepresentation, a U.S. court <a href=\"https:\/\/www.nytimes.com\/2022\/01\/03\/technology\/elizabeth-holmes-guilty.html\" target=\"_blank\" rel=\"noopener\">held the CEO of a biotech company guilty<\/a> of fraud in enticing investors with false information. Why then are Japanese prosecutors reluctant to bring a fraud case, which is the essence of the wrongdoing?  A fraud verdict could result in imprisonment of 10 years or longer, a prison term comparable to that facing the American CEO, whereas an insider trader faces only 5 years.  If this results from incompetence of the prosecution or the judiciary, the Japanese legal enforcement&#8217;s weakness may be the cause of the inefficient capital market, and rectifying the judicial environment should be the primary task of Premier Kishida.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Is the judiciary doing all it could? A Japanese public company named &#8220;Tella&#8221; filed for bankruptcy in August. The biotech&hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14,15],"tags":[],"class_list":["post-4583","post","type-post","status-publish","format-standard","hentry","category-life","category-soc"],"_links":{"self":[{"href":"https:\/\/www.kitamuralaw.com\/index.php?rest_route=\/wp\/v2\/posts\/4583","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kitamuralaw.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kitamuralaw.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kitamuralaw.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kitamuralaw.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4583"}],"version-history":[{"count":7,"href":"https:\/\/www.kitamuralaw.com\/index.php?rest_route=\/wp\/v2\/posts\/4583\/revisions"}],"predecessor-version":[{"id":4646,"href":"https:\/\/www.kitamuralaw.com\/index.php?rest_route=\/wp\/v2\/posts\/4583\/revisions\/4646"}],"wp:attachment":[{"href":"https:\/\/www.kitamuralaw.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4583"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kitamuralaw.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4583"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kitamuralaw.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4583"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}