Why are differing class periods sometimes alleged?
Plaintiffs’ attorneys may have different theories about the proper extent of a class period or for what period of time damage can be recovered. Thus, at the beginning of a class action, it is not uncommon for differing class periods to be alleged. Ultimately, the lead plaintiff(s) and the court will sort out the class period that will govern. Typically, approximately two to three months after the first class action arising out of a Defendant’s common course of conduct is announced, the district court consolidates all related proceedings. Thereafter, the district court appoints a lead plaintiff or a small group of co-lead plaintiffs and their counsel to direct the consolidated proceeding. The lead plaintiffs and their counsel will then file a consolidated complaint, which becomes the operative pleading for the putative class. In the consolidated complaint, lead plaintiffs will allege what they believe is the proper class period. Defendants may still challenge the proposed class period.
