Securities Class Action Litigation

A securities class action lawsuit is a class action lawsuit filed on behalf of investors who suffered economic loss in a stock or security due to the defendant’s misconduct.This misconduct includes such activities as fraudulent stock manipulation, and it usually cause economic injuries to many people, not just one person. These people join together to seek redress as a group by filing a class action. The group consists of all investors who suffered financial loss because they purchased shares in a company during the period when the fraud occurred.

As in class actions generally, the class action format allows investors who suffered losses due to securities violations to bring a case that might have been too expensive or inefficient to litigate individually.This is particularly attractive if you have suffered small losses.If all of you sue as a class, you effectively level the playing field against the more powerful corporation.If your investment was relatively small, you are especially likely to benefit from the class action format. You effectively get to ride the coattails of those shareholders who suffered more significant losses.

The period of time known as the “class period” is the time during which the alleged fraud or other securities law violation occurred.If the defendant artificially inflated the price of the stock, the period that the price was inflated is the class period. If you purchased your shares during the class period, and you sustained a loss, you are automatically part of the class. Only those investors who purchased stock during the class period may participate as class members in the class action lawsuit.

Every person wishing to be part of the class must prove that he or she meets the criteria of class membership. In a securities class action, investors must show ownership of the stock, including when the stock was purchased and for how much. Confirmation slips or brokerage statements are usually sufficient.After the class is formed, the case proceeds much like a typical individual lawsuit.

If you have a portfolio of securities and would like assistance monitoring your portfolio to detect potential securities class action claims, please contact Wittenberg Law to discuss your options.