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Clifford Chance

Clifford Chance


District Court Ruling Sets High Bar for Early-Stage Dismissal of Lawsuits Involving Unsponsored ADR Programs

March 10, 2020

On January 28, 2020, the District Court for the Central District of California denied a motion to dismiss by Toshiba Corporation in the ongoing Stoyas v. Toshiba Corp. case, which involves securities law claims made on behalf of a class of U.S. investors in unsponsored American Depositary Receipts. This briefing discusses the details of this case and its implications for non-U.S. companies if their shares are the subject of an unsponsored ADR program in the United States. It also provides several suggestions for managing related risks.

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