Investor Protection

Investor Protection
& Securities Fraud

An investor protection or securities fraud 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 federal or state securities law. In federal practice, such cases are brought by “Lead Plaintiffs,” who were investors in the stock and suffered monetary losses because of the alleged financial manipulation or fraud. The “Lead Plaintiffs” bring the lawsuit on behalf of all investors who have suffered financial losses.

Investor Protection Class Action FAQs

What is a “Lead Plaintiff?”)

A Lead Plaintiff is a representative appointed by the court who stands in for and acts on behalf of the other class members in the litigation. When selecting a Lead Plaintiff, a court must determine that the proposed Lead Plaintiff’s claims are typical of those of the other class members, and that the Lead Plaintiff will adequately represent the interests of the class as a whole. Under certain circumstances, more than one class member may serve as Lead Plaintiff. The Lead Plaintiff has control over the course and direction of the litigation.

How does the court determine who serves as Lead Plaintiff?

Federal law provides that the proper Lead Plaintiff is the person or group of persons who, in the determination of the court, has the largest financial interest in the relief
sought by the class. Some courts appoint the Lead Plaintiff based on the dollar amount of the loss due to the securities law violations alleged, and some courts base this
decision on the percentage of net worth loss. In certain situations, several entities and/or individuals may be appointed to serve as “Co-Lead Plaintiffs.”

What is a “class period” in a securities case and how is the class period determined?

The class period typically is the time frame during which it is believed that alleged fraud or other securities law violations artificially inflated the price of the stock at issue in the case. Only persons who purchased stock during this period are included in the class action suit. The class period initially is determined by plaintiffs’ counsel after extensive research and investigation. Sometimes the class period changes during the course of litigation as additional information is uncovered during the discovery process.

I acquired my shares in my 401(k) or IRA account. Can I still participate?

Yes, as long as the shares were acquired during the class period.

Does it cost anything to participate in a securities fraud class action?

No. Plaintiffs in a securities fraud class action brought by FKLM are not responsible for paying attorneys’ fees or expenses directly. All costs and expenses of the litigation are advanced by FKLM. We only recover our fees and costs if we are successful in obtaining a monetary recovery or substantial non-monetary benefit for the class whose interests we represent. If we prevail, our fees and expenses are paid out of the sums recovered for the class upon approval from the court.

Do I need to prove I own or owned the stock to receive proceeds of a settlement or verdict? How do I do this?

Yes. The best evidence of ownership is the confirmation slips you received at the time you purchased the stock. Other evidence could be brokerage statements, which show

when you bought the stock and at what price. Keep these records in a safe place, since you may need to submit them to apply for your recovery after the case has been

resolved. You should receive notification when it is time to send in this documentation. FKLM handles this application for its clients in a given case free of charge.

Freed Kanner typically litigates securities fraud class actions on a contingent fee basis, so our clients do not pay attorneys’ fees or costs unless there is a successful result and monetary recovery. Upon achieving a successful result, Freed Kanner typically then applies to the court for an award of fees and for reimbursement of approved expenses.

Get in touch

Our mission is to use our extensive class action expertise to level
the playing field for victims of corporate misconduct and maximize
the recovery of their financial losses. If you believe that you
may have a such a claim, contact us.

Get in touch