Securities Class Action Frequently Asked Questions
Frequently Asked Questions & Responses about Securities Class Action Law:
1. What is a class action?
2. What is a class period?
3. What are the benefits of a securities class action?
4. What is a lead plaintiff?
5. How does one become a lead plaintiff?
6. How long does it take to prosecute a class action?
7. What will it cost me to be involved in a class action?
8. What is contingency fee litigation?
9. How much money will I receive from this class action?
10. I acquired my securities in my 401(k) or IRA account. Can I still participate?
11. I live outside the United States. Can I still participate?
12. Can I participate in more than one class action at a time?
A class action is a representative lawsuit which allows an individual or entity to commence a lawsuit on behalf of other individuals who are in the same or similar circumstances with respect to a given defendant. A class action is appropriate when many people have been affected by a company’s course of conduct in a similar fashion.
A class period is a range of dates within which a company is alleged to have been engaged in improper conduct. The attorneys investigating a case will review the facts, and along with the court-appointed Lead Plaintiff, determine the appropriate beginning and end of a class period. Sometimes the class period will be lengthened or shortened as an investigation continues.
3. What are the benefits of a securities class action?
A securities class action provides shareholders with the ability to litigate on an equal playing field with the large corporations who have a lot of money to spend on defending lawsuits. A class action allows many people who would never have brought an individual action or arbitration against a company to seek recovery from the company without having to individually retain a lawyer and incur a legal fee.
A lead plaintiff is a proactive member of the plaintiff class who acts as a representative party for all of the shareholders. The lead plaintiff is the client(s) with whom counsel will consult during the litigation. Lead plaintiffs are typically appointed by the court as the class member or members most capable of representing the interests of the entire class. Courts have appointed individuals, groups of individuals, institutional investors, groups of institutions, or even combinations of both as lead plaintiffs as the circumstances of each case may dictate. The lead plaintiff selects counsel to represent the lead plaintiff and the class, and these attorneys if approved by the court are lead counsel or class counsel. The lead plaintiffs are encouraged to have oversight of, and input into, the litigation of a class action beyond that of other class members.
5. How does one become a lead plaintiff?
Under the Private Securities Litigation Reform Act of 1995, courts will appoint a lead plaintiff or plaintiffs to represent a class from the member or members of a class who (i) request to be a lead plaintiff within 60 days of the publication of a notice of the pendency of a class action; (ii) are most capable of adequately representing the interests of the class; and (iii) determined by the court to have the largest financial interest in the relief sought by the class, among those investors who seek to be appointed lead plaintiff.
6. How long does it take to prosecute a class action?
The time to prosecute each class action varies based on the facts, parties, and jurisdiction of a particular case. Some cases settle shortly after the action is brought and some cases may be litigated for years and eventually go to trial. It is not unusual for a class action to take a few years to complete.
7. What will it cost me to be involved in a class action?
Girard Gibbs handles class actions on a contingency fee basis. There are no out-of-pocket fees or expenses paid by the client, regardless of the outcome of the case. If successful in obtaining a recovery for the class, our law firm will apply to the court for a fee that fairly represents the work performed and risk assumed by the firm. In securities class actions, attorneys’ fees typically are awarded as a percentage of the relief achieved by the attorneys for the class. These percentages vary considerably based on the size of the recovery for the class, the length and complexity of the litigation, and several other factors.
8. What is contingency fee litigation?
In contingency fee litigation, attorneys only get paid if they win the case at trial or if the case settles. Attorneys who practice on a contingent fee arrangement typically do not receive any form of monetary payment from a client at the outset of an action and are paid only once there is a successful resolution from any settlement or judgment that is achieved.
9. How much money will I receive from this class action?
The damages paid to shareholders vary depending on the amount of total loss suffered by all class members and the agreed settlement or court-ordered judgment.
10. I acquired my securities in my 401(k) or IRA account. Can I still participate?
Yes, you may participate as long as the shares were acquired during the class period.
11. I live outside the United States. Can I still participate?
Yes, you may participate as long as you purchased the securities at issue during the class period. Some classes are defined only to include U.S. residents, but most are unrestricted.
12. Can I participate in more than one class action at a time?
Yes, if you had losses in different securities for which class actions have been filed.
If you have further questions concerning our securities litigation practice, you may contact us at Girard Gibbs Securities Class Action Law.
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For additional information, please contact Aaron Sheanin or Jonathan Levineat (866) 981-4800.