What Is A Securities Fraud Class Action?
A securities fraud class action is a lawsuit filed by investors who bought or sold a company’s securities within a specific time period (known as a “class period”) and suffered economic injury as a result of violations of the securities laws. In securities fraud cases involving misleading statements or omissions, the class period generally starts when a company makes an untrue statement of material fact about the company or fails to disclose a material fact necessary to render other statements not misleading. The class period generally ends when the company fully discloses the truth to the investing public.
What Is The Difference Between A Securities Fraud Class Action And A Shareholder Derivative Action?
In a securities fraud class action, the lead plaintiff pursues claims on behalf of themselves and a class or classes of similarly situated shareholders to obtain monetary and other benefits directly for the members of the class. In a shareholder derivative action, the representative plaintiff pursues claims on behalf of a corporation, and benefits indirectly as a shareholder from any corporate governance reforms or monetary recovery obtained for the corporation.
What Are My Responsibilities As Lead Plaintiff In A Securities Fraud Class Action?
A lead plaintiff is a shareholder or group of shareholders who volunteer to represent other similarly situated shareholders of the corporation and agree to act in the best interests of the class. The court appoints as lead plaintiff the shareholder or group of shareholders who represent they suffered the greatest financial loss due to the company’s wrongdoing. The lead plaintiff gets to select and retain counsel to represent the class. The lead plaintiff stays informed about significant developments in the case and works with class counsel to make important strategic decisions regarding the conduct and disposition of the litigation.
Does It Cost Anything To Participate In A Securities Fraud Class Action?
No. Plaintiffs in a securities fraud class action brought by Robbins LLP are not responsible for paying attorneys’ fees or expenses. All costs and expenses of the litigation of shareholder derivative actions are advanced by Robbins LLP. We only recover our fees and costs if we are successful in obtaining a monetary recovery or substantial nonmonetary benefit for the class whose interests we represent. If we prevail, our fees and expenses are paid out of the sums recovered for the class.