What are the benefits of a securities class action?
Federal securities laws prohibit fraud in connection with the sale of stock. Investors who suffer damages as a result of fraud may file suit against all individuals or entities responsible for committing the fraud. A class action may be the only practical way of proceeding. A securities class action enables small investors to sue a large corporation on an equal footing. Individually, small shareholders rarely can afford the highly specialized legal counsel necessary to prevail against a company with a sizeable budget to spend in its defense. The legal fees necessary to pursue a small individual case would far exceed the investor’s loss.
A securities class action provides small shareholders with the ability to litigate on an equal playing field with the large, well-funded corporations who have allegedly violated the securities laws and have a lot of money to spend on defending lawsuits directed at those violations. A class action allows many people who would never have brought an individual action against a company to seek recovery from the company without having to individually retain a lawyer and incur a legal fee.
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 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. 4. What is a lead plaintiff? 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 dictat
