Class actions are a legal method for many aggrieved parties to pursue claims in a collective manner. Allowing investors in a stock, for instance, to recover losses caused by corporate fraud, or employees to pursue claims against their employees for harmful and/or unlawful employment practices.
Class Action FAQ
An injured party, such as a defrauded investor, has no obligation to join the class action, and in fact in many instances the injured party’s rights are automatically included in a class action.
Courts overseeing a class action appoint one or more members of the class to liaison with counsel and make important decisions that implicate the rights of other class members. Lead plaintiffs may receive an additional award from the court in compensation for their time and effort, and the benefits they bestow on the class.
Securities class actions are lawsuits filed by at least one investor seeking to recover losses caused by corporate fraud and malfeasance. Securities class actions typically allege that a corporation through its officers and directors misled investors over a certain period of time, the “Class Period.”
In order to pursue claims for securities fraud, investors must claim that the wrongful conduct occurred over a period of time, or “Class Period.” Investors that transacted in the relevant securities outside of the Class Period usually are ineligible to participate in the recovery of the class action.
Class actions typically take at least 2-3 years to litigate, although the actual time it takes to resolve a case varies, depending on the complexity of the case, the issues involved and other factors.
If you purchased your securities during the class period, and your purchase resulted in a loss, you may be eligible to recover money damages.
Yes, investors can participate in the class action after selling shares, so long as the shares were purchased during the Class Period.
No. The Portnoy Law Firm will advance all costs of your class action lawsuit. Operating on a contingency basis, clients do not pay out of pocket, and the firm only recovers its expenses upon recovering money for clients.
Potentially, other investors may file another case, in the event more than one class action filed, the court typically consolidates the cases into one single cases. The lead case will incorporate all the potential claims and parties.