Does It Cost Anything To Join A Securities Class Action?

Investors who lost money due to fraud or misinformation may consider joining a securities fraud class action lawsuit. These lawsuits offer smaller investors an opportunity to recoup at least some of their losses and hold the people who perpetrated the fraud accountable. So, you may be wondering: does it cost anything to join a class action lawsuit for securities fraud?

Silver Law Group represents investors who were cheated because of misconduct by company executives and third parties promoting the investment. We have an enviable track record of success representing investors from all over the U.S.

We generally take cases on a contingency fee basis. This means we only get paid our fees and costs if we successfully recover money. 

Deciding Whether To Join A Securities Class Action

Class action lawsuits allow multiple investors who lost money to seek compensation for their losses. Many participants in class actions did not lose enough money to make it worthwhile to pursue an individual legal claim.

15 United States Code § 78u-4 governs class actions lawsuits in securities fraud cases. The investors who owned a stock within a specified timeframe, called the class period, are automatically listed as plaintiffs in the lawsuit. However, a presumptive plaintiff could choose to opt out and pursue an individual claim.

An attorney with Silver Law Group can evaluate your circumstances and determine whether you’re eligible to participate in a class action lawsuit. If so, they can further evaluate whether that is the best strategy for you or if pursuing an individual claim makes sense.

No Upfront Expenses When Joining A Securities Class Action

There are expenses associated with bringing a class action lawsuit. Accumulating and managing evidence, plus the administrative work of organizing information from hundreds or even thousands of investor/plaintiffs, can cost thousands of dollars. 

The law firms involved in bringing the claim typically pay the administrative and other costs without seeking upfront payment from the plaintiffs. Similarly, they do not expect payment for their legal work until there is a settlement or verdict.

Silver Law Group bears these expenses until a settlement or verdict favoring the plaintiffs is reached in the case. Handling litigation costs and legal fees in this way means that there is no charge to the investor to join a class action securities litigation. As contingency fee attorneys, our interests are aligned with our clients. 

The Court Decides The Securities Class Action Determines The Legal Fees

When Silver Law Group achieves a settlement or favorable verdict, the court determines what the legal fees should be. When determining fees, the factors the court considers include the complexity of the case, the number of plaintiffs, the size of the settlement or verdict, and fees awarded in similar cases. Attorneys’ fees are usually expressed as a percentage of the total settlement.

After deducting litigation costs and attorney’s fees, funds are shared among all the plaintiffs on a pro rata basis. The amount the plaintiff lost due to the defendants’ misconduct determines the amount they can recover.

Most investors will end up with a percentage of the money they lost. Although it is rare to receive full reimbursement of all losses, a class action is a cost-effective way to recoup some of your investment and hold the fraudsters accountable.

Contact Silver Law Group About The Cost Of Joining A Securities Class Action

Our firm of investor advocates has had tremendous success representing plaintiffs in class action lawsuits seeking compensation for wrongdoing by corporate officers and others promoting investments. It doesn’t cost you anything to join a securities class action lawsuit being handled on a contingency fee basis. Get in touch with our firm today to discuss how we can help.