Joining a securities class action lawsuit can hold the corporation responsible for their illegal practice. The securities class action lawsuit is a group of investors that have suffered financial loss in stock or securities, because of the defendant’s wrongdoing. This wrongdoing can be in the form of fraudulent stock manipulation, or other things that violated the federal securities laws that protect investors. This usually involves more than one person and the group of all the investors that suffered a financial loss because they purchased shares in a corporation during a time when the fraud occurred makes up the individuals of the class action lawsuit. If you have been the victim of securities fraud consulting with the experienced Los Angeles, California class action Ehline Law firm can help you recover your losses when joining a class action suit with other victims.
How the Class Action Lawsuit Works
The class action lawsuit will allow individuals and small businesses that have suffered losses due to security violations to join together, to bring a lawsuit against the defendant. Individually this type of litigation would be too expensive and often time, is ineffective to recover losses. The small investor financial losses is significant to them and if they bought shares of stock at $20 per share due to fraudulent information, but the stocks are only worth $10 a share, with the class-action lawsuit is possible to recover the financial loss. Attempting to file a legal claim with an attorney to recover this financial loss alone would be more expensive than the actual loss, but when joined by a group there is the ability to have more power against the corporation and effectively recover the losses. Even in the event that the investment was small it is possible to benefit with the class action lawsuit, along with the shareholders that suffered a more significant loss.
Class Action Terms
- Class Period:
- Class Formation:
Class action period is the time that the alleged fraud or securities law violations were conducted. In the case there the stock price was artificially inflated this during the time the price was inflated would be the class period. The investors that purchased stock during the class period are the only investors that can join the class action lawsuit.
The class formation is when the class action lawsuit is being formed and the attorney will look for other victims, this can be in newspaper and magazine publications, or a notice can be sent directly to individuals that might have been affected by the fraudulent behavior.
Anyone that wants to join the class action lawsuit will need to prove they meet the criteria of the class members. When it is a securities class action lawsuit the individual or small business will show ownership of stock, which will need to include when the stock was purchased and what was paid for the stock. It is also possible to use brokerage statements or confirmation slips.
The class action lawsuit is like other types of legal suits and need to follow a format and will require you to contact an experienced Los Angeles, California class action attorney, since it will also require certain procedures.