What is a Securities Class Action Lawsuit?
A securities class action lawsuit is filed by investors who have bought or sold a company’s publicly traded securities within a class period and have suffered economic injury as a result of violations of securities laws.
What is a Class Period?
A “class period” is the time frame during which it is believed that violations of securities law have taken place which have resulted in an inflated price of stock. Only people who have purchased shares during the “class period” are eligible to be included in the class action suit. Additionally, only those shares purchased during the “class period” are subject to litigation.
What Happens if you join a Class Action Lawsuit?
When you join a class action lawsuit you waive the right to individually file suit against the defendant. Joining the class, entitles you to receive compensation if any is awarded. You can choose to opt out of a class action lawsuit and file a suit individually. However, if you opt out you are not entitled to receive any compensation that is awarded as a result of the case.
What is a lead Plaintiff in a Class Action?
Generally, one person is appointed as the lead plaintiff in a class action suit. Although, in some cases more than one class member can be appointed. A lead plaintiff is the named party in a class action and adequately represents the entire class as a whole. A lead plaintiff is usually the person with the largest financial interest in the case. However, sometimes it can be an individual the attorney believes is best to represent the class in court because of their experience and ability to handle the various stages of litigation.
How long does a Securities Class Action Usually take?
Typically, a securities class action takes 2-3 years from when the initial complaint is filed to when the case is resolved or settled. However, this can vary significantly depending on the circumstances.
