| WHAT IS A CLASS ACTION? |
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| WHAT TYPE OF CASES ARE APPROPRIATE FOR CLASS ACTIONS? |
Class actions are often used to seek monetary damages and other relief resulting from securities law violations (such as fraudulent financial statements), violations of the anti-trust laws (such as price-fixing conspiracies and monopolization cases), consumer fraud, employee benefits disputes, and mass torts (including defective products). The attorneys representing the lead plaintiffs in effect serve as “private attorneys’ general” to assist in the enforcement of the applicable Federal and State laws.
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| WHAT IS A SECURITIES CLASS ACTION? |
A securities class action is a lawsuit brought on behalf of a group of investors who have suffered an economic loss in a particular stock or security as a result of fraudulent stock manipulation or other violations of securities laws. Such cases are brought by one or more investors in the stock, on behalf of themselves and all others who have suffered financial losses as a result of purchasing shares in a company during the period of time the fraud or securities laws violations artificially inflated the value of the stock (known as the “Class Period”).
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| WHAT IS A LEAD PLAINTIFF AND HOW DOES THE COURT DETERMINE WHO WILL SERVE AS LEAD PLAINTIFF? |
A Lead Plaintiff is a representative person(s) or party appointed by the court, who acts on behalf of the other class members in the litigation. The Private Securities Litigation Reform Act of 1995 provides that the most adequate Lead Plaintiff is the person or group of persons who, in the determination of the court, has the largest financial interest in the relief sought by the class. The court must also determine that the proposed plaintiff’s claims are typical of those of other class members, and that this plaintiff will adequately represent the interests of the class as a whole.
Anyone may seek to be Lead Plaintiff within a sixty-day period specified in the press release announcing the filing of the action.
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| WHY SHOULD I BE A LEAD PLAINTIFF? |
A Lead Plaintiff is a representative plaintiff for all of the shareholders in a proposed class. The Lead Plaintiff serves a vital purpose by taking a proactive role in the litigation, consulting with the attorneys handling the case, and looking out for the best interests of the class. Those with large financial stakes in a matter are particularly well suited for the Lead Plaintiff position and the law promotes appointment of such entities and individuals.
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I MISSED THE SIXTY-DAY DEADLINE. WHAT SHOULD I DO NOW?
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If you purchased your shares during the relevant Class Period and sustained losses, you will still be eligible to participate in the class action. The sixty-day deadline applies only to those seeking to be Lead Plaintiff.
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I OWN STOCK IN A COMPANY BEING SUED, AM I ELIGIBLE TO BE PART OF THE CLASS?
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If you purchased or acquired your stock during the indicated Class Period, then you are eligible to participate in the action and be a member of class. Any shares purchased or acquired before or after the Class Period, however, will not be included in a calculation of loss.
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I ACQUIRED STOCK IN A 401(k) or IRA ACCOUNT, AM I ELIGIBLE TO BE PART OF THE CLASS?
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Yes, so long as you acquired your stock during the indicated Class Period, then you are eligible to participate in the action and be a member of class. Any shares acquired before or after the Class Period, however, will not be included in a calculation of loss.
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| CAN I SELL MY STOCK? |
Yes, you can sell your stock and still be eligible to share in any recovery so long as you still realized a loss. If you make money on the sale, however, you will no longer have a loss and will not be entitled to share in any recover.
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| HOW ARE ATTORNEYS PAID IN CLASS ACTION CASES? AM I RESPONSIBLE FOR ANY COSTS, EXPENSES OR LEGAL FEES? |
Generally, there is no out-of-pocket cost to any class member regardless of the outcome. We primarily work on a contingent fee basis, where we pay all costs and expenses. If we are successful in obtaining a recovery on behalf of class members, we will ask the court to award us fees and expenses from the recovery. The amount awarded by the courts depends upon a number of factors, including the quality of the work, the difficulty of the case, the nature of the result, the number of hours spent on the case, as well as the risks involved.
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| HOW LONG DOES A SECURITIES CLASS ACTION USUALLY TAKE TO SETTLE OR RESOLVE? |
The typical securities class action case takes two to four years from the time the initial complaint is filed until it concludes either by settlement, judgment, or dismissal. Some cases may take longer, if there are appeals, and others may be resolved quickly.
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SEVERAL LAW FIRMS HAVE FILED LAWSUITS RELATED TO THE SAME UNDERLYING SECURITIES VIOLATIONS, DO I NEED TO CONTACT ALL OF THEM?
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No. Where more than one case has been filed on behalf of a class, the various actions will eventually be consolidated by the court. You need only return a certification to one firm.
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HOW CAN I BE KEPT INFORMED OF THE STATUS OF THE CLASS ACTION DURING THE PENDENCY OF THE LITIGATION?
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If the case is certified as a class action, you will be notified either by the Lead Counsel or your broker if a settlement is reached. If you are appointed Lead Plaintiff, you will get regular status reports from your counsel.
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| WHAT IS A SETTLEMENT NOTICE? |
A settlement notice received by mail or read in a publication, provides information on the terms of the settlement and rights of the class members eligible to benefit from the settlement.
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| I RECEIVED A CLAIM FORM, WHAT DO I DO? |
If you received a claim form, you are eligible to receive a benefit from a recovery in a Class Action. Completing the claim form is required by the court if you wish to participate. If you do not complete the claim form and submit it as directed, you will not receive your share of the recovery.
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I HAVE INFORMATION RELATIVE TO A PENDING CASE. WHAT SHOULD I DO?
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If you believe that you have information relating to a pending case, please contact us. |
