Enabling class action lawsuits could create alternative recourse for Singapore investors

GRAB'S share price slide since it went public on the Nasdaq has put it at risk of class action lawsuits in the United States, with a number of law firms inviting shareholders to join up and initiate investigations.

Such actions are relatively common in the US, but are not seen in Singapore for various reasons. Local investors have typically had to rely on regulators or market intermediaries - such as the Securities Investors Association (Singapore) - when in disputes with the board or management of listed companies.

Critics argue that class action lawsuits create an overly litigious environment. But retail investors in Singapore would probably appreciate having such lawsuits as an additional channel of recourse.