Frequently Asked Questions
Securities Fraud
What is a Securities Fraud Class Action?
A securities fraud class action is a lawsuit brought by one or more parties on behalf of a large number of investors in a public corporation who have suffered losses in connection with fraud. A securities fraud class action seeks to recover losses resulting from fraud for the benefit of all the investors who acquired the securities during the time of wrongdoing, which is referred to as the “class period,” all such investors are referred to as “class members.”
How do I become a class member?
If you purchased the securities of the company involved in a securities class action during the class period then you are automatically a class member, even if you do not contact or retain an attorney.
What is a Lead Plaintiff in a securities class action?
A lead plaintiff in a securities class action is a class member appointed by the court who will best represent the interests of all the class members. The lead plaintiff in a securities class action is typically the class member with the largest financial interest in the action who timely submits an application with the court. The lead plaintiff has the authority to select and retain the attorneys who will represent the class and directs the litigation.
Will I have to testify?
Generally, only the lead plaintiff will have testify. In most cases, the lead plaintiff is called upon to attest to how and when he/she purchased the securities at issue in the case and to affirm that they were not personally aware of the fraud at the time those securities were purchased. This often takes place during a deposition at convenient time and location for the lead plaintiff, with counsel present.
As an institutional investor, why should I participate?
Since institutions often have the largest financial stake in a case it can be important for them to have a direct say in how the case is managed. In fact, several studies have shown that institutional investor participation consistently yields higher settlement amounts. Our expert institutional client team will advise our clients to participate only when we think it will make a difference in the case.
How much of my losses can I recover?
The parties will attempt to establish, through the use of experts, how much investors would have paid for the stock had there not been any fraud. Since there are many factors that determine stock price, recovery amounts may differ from investors’ economic losses.
What if I sold my stock?
As long as you purchased your shares during the class period and suffered losses you are still eligible to participate. If you are still holding your shares you may sell them and still participate. When you sold your shares may be a factor as to how much damages you can recover.
What if I live outside of the United States?
Investors who live outside the United States are still eligible to participate.
Can I participate in more than one class action at a time?
Yes. There are no limitations on the number of lawsuits that you can be a class member of.