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Class Actions FAQ
What is a Class Action?
A class action suit may occur when many different people combine their similar complaints. This saves court time and allows a single judge to hear all the concerns at the same time, and come to one settlement for all parties. If the court agrees to certify the complaints as a class action, all class members should have equal say and rights to any monies or remedies ordered by the court.
A Class Action is a type of lawsuit in which one person, usually the “Lead Plaintiff,” represents everyone who suffered similar harm from the defendant’s unlawful conduct. Class action lawsuits often are filed when it would be impractical or prohibitively expensive for each person who was harmed to file an individual lawsuit, and they enable small shareholders or consumers to seek recovery from large corporations possessing much greater legal and financial resources.
Generally, securities class actions are filed in the Federal District Courts and allege that the defendant(s) violated the Securities Act of 1933 and/or the anti-fraud provisions of the Securities Exchange Act of 1934. The typical class action takes at least 2-3 years to litigate, although the actual time it takes to resolve a case varies, depending on the complexity of the case, the issues involved and other factors.
What is the Class Period?
The Class Period is a specific time period during which the unlawful conduct is alleged to have occurred. For example, in a securities class action, anyone who acquired securities of the defendant company during the Class Period is a member of the Class and eligible to participate in any recovery, if we are successful. Although the initial complaint will specify a certain Class Period, the Class Period may be expanded to encompass a longer period of time.
Who is eligible to participate in the Recovery?
To Participate in the Recovery, your overall investment in the stock during the Class Period must have resulted in a loss. You may sell your stock at any time and still participate in the recovery, so long as your overall investment resulted in a loss.
What is a Lead Plaintiff?
Near the beginning of a securities fraud case, the court appoints a Lead Plaintiff to prosecute the lawsuit on behalf of the members of the Class. An individual plaintiff, a group of individuals or other entity – an investment fund, for example – can serve as Lead Plaintiff. The court usually appoints the class member with the largest financial interest in the recovery sought by the Class to serve as the Lead Plaintiff.
What is a Lead Counsel?
The federal securities laws require public notice to be published within 20 days after a securities fraud class action lawsuit is filed, alerting investors that the lawsuit has been filed and that class members have 90 days to request the court for appointment as Lead Plaintiff. In addition to representing the Class, the Lead Plaintiff plays a crucial role in selecting the court-appointed Lead Counsel, and is encouraged to consult with Lead Counsel concerning the course of the litigation. By seeking Lead Plaintiff status, and choosing skilled, experienced counsel to represent the Class, an individual class member may significantly affect the likelihood of the lawsuit’s success and the size of any eventual recovery.
How do I sign up to be a potential Lead Plaintiff?
The requirement to participate as a potential Lead Plaintiff is simple: Sign up here on our website or download and complete a Certification form which you can return to The Rosen Law Firm, P.A. by fax at (212) 202-3827 or by mail at 275 Madison Avenue, 34th Floor New York, NY 10016.
What are the Costs and Expenses for me?
Costs and Expenses of the lawsuit are usually advanced by the law firms prosecuting on behalf of the Class. Our firm works on a contingent fee basis. That means we will ask the court to grant us reimbursement of our out-of-pocket expenses and attorneys’ fees -- usually a percentage of the total recovery -- only if we are successful.