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How Do I Know If I Have A Securities Class Action Claim? 

Securities class action lawsuits can be an invaluable tool to help victims of investment fraud who were harmed by the same company or fraudster, to recoup their monetary losses. When an individual or entity perpetrates a fraudulent investment scheme, investors may suffer varying degrees of financial harm. A class action can allow individual investors who lost both small and large sums of money to participate in a lawsuit against the fraudulent party while recovering damages proportionate to their losses.

If you have suffered losses from fraudulent stock manipulation, Ponzi scheme, or other fraud stemming from the purchase or sale of securities, you may be eligible to join a securities class action lawsuit.

Understanding Securities Class Action Claims

When investors sustain losses on securities due to fraud, misrepresentation, omission, or other deceitful means, they may be entitled to compensation. Securities include a wide variety of investments such as:

  • Bonds
  • Stocks
  • Notes
  • Debentures
  • Investment contracts
  • Derivatives

When a group of investors sustain similar losses or financial harm on securities because of the illegal actions of the same perpetrator, they may be able to band together to pursue litigation. The liable parties in these cases are often publicly traded companies or major financial institutions, such as commercial banks, investment banks, lawyers, accountants, and others.

Lead Plaintiffs And Joining A Class

In a securities class action claim, a single or small group of investors generally files a lawsuit on behalf of the group of investors who suffered the losses. This individual is known as the lead plaintiff. They are intended to act on behalf of the other class members in the litigation alleging violations of securities laws by a person or entity. In some cases, more than one individual may serve as lead plaintiff.

Once a lawsuit is filed in state or federal court and the court certifies the class action, all individuals who have suffered similar harm from that same defendant will be notified. Notification can occur in a variety of ways, including mail notices, newspaper and other media announcements, and email.

Qualifying class members are automatically included in the lawsuit but can opt out if they want to upon receiving notification of the litigation or certification of the class. Those who do not opt out will remain part of the class action and would be entitled to financial recovery in the event of a successful settlement or court award.

Advantages Of Joining A Securities Class Action Lawsuit

There are numerous potential advantages to joining a securities class action lawsuit. Where an investor with a smaller claim would not necessarily be able to file a lawsuit on their own, they could receive some monetary recovery for the harm they suffered by working together with other investors in a class action.

Securities class action lawsuits can deter bad actors in the financial industry from engaging in fraudulent or misleading conduct in the future, by demonstrating there is significant accountability for these actions. Litigation can be a costly process, but all costs are divided among the members in a securities class action lawsuit and frequently advanced by class counsel.

A class action can also be considerably more efficient than filing individual claims. All claims are grouped together under the umbrella of a single filing, so the case is decided by one judge. However, damages are awarded to members of the class based on the degree of the loss they sustained and other factors.

Contact Silver Law Group And Learn If You Have A Securities Class Action Claim

Silver Law Group represents investors in securities class action claims across the nation. Scott Silver understands the toll these financial losses can impose, as well as the necessary steps to collect what you are owed.

We can evaluate your case to determine whether you could join an existing class action or have grounds to start your own. Contact us today to receive your free consultation and discuss the next steps towards getting your hard-earned money back.

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