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Government Civil Liability for Stock Market Losses in Iranian, American, and French Law
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Vahid Farhanian1   , Sara Akhondi1 |
| 1- Islamic Azad University, North Tehran Branch |
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Abstract: (36 Views) |
| The stock market is a major arena of economic activity, where governmental decisions and interventions can leave substantial impacts on investors. This study conducts a comparative legal analysis of the government’s civil liability for stock market losses in three legal systems: Iran, the United States, and France. The research employs a descriptive–analytical method with an applied approach, and the data were collected through library sources and authoritative legal documents. The analysis is based on a comparative examination of statutory frameworks and judicial precedents in the three jurisdictions. The findings indicate that in Iran, government civil liability is predominantly fault‑based and defined within administrative (tassadi) activities. However, the exception of sovereign acts, difficulties in proving causal links, ambiguity regarding officials’ fault, and lengthy judicial proceedings hinder effective compensation for investors’ losses. In the United States, the Federal Tort Claims Act (FTCA) sets specific limitations, recognizing government liability only in cases of non‑discretionary negligence by federal employees while exempting policy‑based decisions. In France, with its acceptance of no‑fault liability and the significant role of the French Conseil d’État, the legal system adopts a more protective approach toward victims and investors, enabling financial compensation as well as corrective administrative measures. The results suggest that the Iranian legal system could significantly enhance investor compensation by revisiting sovereign act exceptions, promoting specialized adjudication, increasing transparency, and selectively adopting protective mechanisms from the French model along with the balanced limitations of the American system. |
Article number: 8 |
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Full-Text [DOCX 42 kb]
(11 Downloads)
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Type of Study: Research |
Subject:
Special
Received: 2026/04/23 | Accepted: 2026/05/14 | Published: 2026/05/14
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