Ed Korsinsky Answers Your Securities Litigation Questions
Securities Class Action
Securities class actions (SCA) or securities fraud class actions are lawsuits filed by investors who purchased or sold publicly traded securities of a company within a specified time-period (known as a “class period”) and suffered economic injuries because of securities laws violations.
What is Securities Fraud?
Taking Action Against Securities Fraud
A class is a group of people who purchased securities from a company during a specified time period, also known as the “Class Period.” You may be a member of a class if you bought securities during the Class Period and suffered losses. You don’t have to be a part of the class action to get money from the settlement.
Who Is Involved In The Lawsuit?
Can I sell my stock and still participate in the class action?
You don’t usually need to keep your shares to become a class member. However, you must be able to show that your shares were purchased during the class period.
The Benefit of Securities Class Action Lawyers for Investors
Additionally, claims made by smaller investors are economically feasible through class actions. Investors with low losses may not be able to hire securities lawyers and file lawsuits against companies. However, investors can join investor class actions for virtually no cost. The class action lawyers, and their firm bear the costs of litigation, while the attorneys’ fees are covered by a portion from any settlement or judgment. Therefore, even if the class suffers relatively minor losses, they may be able to have their rights defended at virtually, or at no cost at all.