Does an institution have any obligations and responsibilities if it participates in a class action?
If an institution becomes a lead plaintiff, it will be required to provide information about its transactions in the securities that are the subject of the lawsuit. Sometimes courts require a lead plaintiff to provide certain other information about itself and about other investments. Occasionally, a representative of the lead plaintiff is asked to give a short deposition — usually no more than 2-3 hours — answering questions about the transactions and the lead plaintiff’s involvement in the lawsuit.
