Securities Class Actions

  • What is a class action?

    A class action is a representative lawsuit that allows representatives or named plaintiffs to sue one or more defendants on behalf of others who have suffered the same type of harm. Class actions are typically filed when the issues in a case apply to so many people that it is not practical for them all to litigate their own separate individual lawsuits.

  • What is a securities class action?

    A securities class action is a class action filed by investors who purchased a company's debt or equity offering within a specific period of time known as a "class period" and suffered economic injury as a result of a significant negative public disclosure about the company during that class period that caused a serious drop in the company's stock price. Securities class actions generally are brought under the anti-fraud provisions of the federal securities laws including the Securities and Exchange Act of 1934 and the Securities Act of 1933.

  • Of what benefit is a securities class action?

    Securities class actions provide shareholders with the ability to be represented in lawsuits against large, well-funded corporations who are alleged to have violated the securities laws and have a lot of money to spend on defending lawsuits directed at those violations. Class actions allow investors who would never have brought an individual action against a company to seek recovery from the company without having to individually retain lawyers and incur legal fees.

  • Why are securities class actions filed against companies?

    Securities class actions are typically brought when: (a) a publicly held company and its officers, directors, other employees, accountants or underwriters publicly make any untrue statement of a material fact or omit to state material facts; and (b) as a result of ultimate disclosure of the untrue statement or omission, the company's stock price drops, injuring investors who purchased the stock at artificially high prices during the class period.

  • What is a class period?

    A class period is a specific time period that starts when a company makes an untrue statement of a material fact about the company or the company has a duty to disclose such material fact and fails to do so. A class period generally ends when accurate information about the company is publicly disclosed.

  • How do I know if I have a securities-fraud claim?

    If you purchased publicly traded securities that declined in value following a significant negative disclosure about the company, you may have a claim.Scott + Scott will quickly investigate the matter and advise as to whether any securities fraud may have occurred. If you wish to discuss your claim or have any questions concerning your rights in a securities-fraud action, please contact us.

  • Do I have a claim if I sold my stock before the filing of a securities class action?

    A valid claim in a securities class action depends on when the stock was purchased. If you purchased your stock during the class period and suffered losses as a result of the alleged fraud, you have a claim even if you sold your stock before the filing of a securities class action.

  • Do I have to hold my stock once a securities class action is filed?

    You do not need to hold the stock in order to participate in a securities class action or securities class action recovery.

  • If I continue to hold stock in a company after a significant negative disclosure, will I be precluded from participating in a settlement?

    No, you can still participate in a settlement.

  • Should I file a securities class action if a similar action has already been filed?

    Having suffered meaningful losses, you are entitled to be represented by the best available lawyers to pursue your claims. Experienced counsel will pursue your claims diligently. Scott + Scott is a national law firm with extensive experience in securities class actions and a record of obtaining exceptional results for class members.

  • What is a lead plaintiff in a securities class action?

    A lead plaintiff is a class member, or class members, appointed by the court to represent the interests of the class. The lead plaintiff must seek appointment as such and usually has the largest financial interest in the relief sought by the class of those seeking lead plaintiff appointment. Lead plaintiff designation can be granted to individuals, groups of individuals or institutional investors.

  • How do I become a lead plaintiff?

    Courts appoint a lead plaintiff or lead 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; and (ii) are most capable of adequately representing the interests of the class.

  • What are the lead plaintiff responsibilities in a securities class action?

    Lead plaintiffs select and retain counsel to represent the class. Lead plaintiffs thereafter represent all class member interests in the litigation.

  • How are damages calculated in a securities class action?

    Damage experts estimate the price that the subject stock would have been during the class period had all material facts been known at the beginning of the class period. This figure may or may not equal the total amount that investors feel they lost on their investment. This is because stock prices reflect many factors in any given case and not always solely the allegedly undisclosed or misrepresented truth.

  • How long before securities class actions are resolved?

    Some actions settle quickly. Some eventually go to trial. Because of the complexity of securities class actions, many take years to litigate. Scott + Scott aggressively prosecutes all its cases.

  • Does it cost me anything to file or participate in a securities class action?

    Scott + Scott represents investors in securities class actions on a contingent-fee basis. We seek fees from the court if, and only if, we are successful in obtaining a recovery for the class. All costs and expenses of the litigation are advanced by Scott + Scott.