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 on behalf of 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”).
A securities class action is a lawsuit that is brought by one or more persons on behalf of a large number of investors who have suffered economic harm due to a drop in stock price attributable to violations of the securities laws. The class action seeks damages on behalf of investors who acquired a company’s stock within a specific period of time, known as the “class period.” What is the “class period?” The “class period” is the period of time during which the lawsuit alleges that fraud caused the price of a security to be artificially inflated. Investors who acquired their stock during the “class period” claim that they would not have bought the stock had they known the truth or, because of the fraud, they paid more for the stock than it was worth.
A. A securities class action is a single lawsuit that is brought by one or more persons on behalf of a large group of investors who have suffered economic harm due to a drop in stock price attributable to violations of the securities laws. The class action seeks damages on behalf of anyone who acquired a company’s stock within a specific period of time, known as the “class period.
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”).
A securities class action is a lawsuit filed by a person or an entity who purchased a company’s debt or equity securities and who has suffered economic injury due to the disclosure of information about the company in violation of the securities laws. Securities class actions generally are brought under the anti-fraud provision of the federal securities laws including Section 10(b) of the Securities and Exchange Act of 1934 and the Securities Act of 1933.
Related Questions
- I am a member of the class of plaintiffs in the GM Securities Class Action Case. Where can I obtain more information concerning the status of that case and any settlement distributions?
- What is the difference between a securities class action and a shareholder derivative suit?
- How long does a securities class action take to be resolved?
