What Is A Securities Class Action?
Securities class actions seek to obtain remedies for injured shareholders. These actions are filed against corporations on behalf of shareholders whose shares in the company lost value as a result of the corporation’s failures and deceptive practices. These failures can include failures to disclose material adverse facts about the company’s business and/or operations to investors and making materially false or misleading statements. For a sampling of some cases, see here. The Private Securities Litigation Reform Act of 1995 (PSLRA) allows any investor who purchased stock in a company during the designated class period to seek to be appointed as the lead plaintiff in the class action lawsuit and to file claims in the pending lawsuit. In these cases, the indicated class period details a time period when purchases of the specific stock was made and provides a 60 day period in which to file for lead plaintiff. The lead plaintiff and their chosen attorney (who will need to be approved by the Court) will lead the litigation on behalf of all class members. Thereafter, members of the class need not opt in to participate in a settlement rather they must file a claim form when settlement occurs and they will recover their pro-rata share of the settlement proceeds.