A motion to approve a class action was filed against a public company that entered a cooperation agreement with an Internet search engine provider, arguing that the company withheld the fact that it did not comply with the policy of the search engine provider and is thus in breach of the agreement.
The Supreme Court held that a public company must report on "any even or matter that deviate from the ordinary course of business of the corporation because of their nature, scope or possible result, and that may have a material influence on the corporation, and any even or matter that may materially influence the price of the securities of the corporation." Violation of the duty to immediately report may be by "closing the eyes" of its officers from reviewing material facts that require immediate reporting to the investors and not only when actual knowledge exists. However, if data was not revealed and was not reported only due to negligence there will be no liability due to the lack of reporting and thus the motion for class action was dismissed.