The financial markets are sensitive to unexpected flurries of activity, rumors, and other similar events. Some bad actors exploit this to manipulate stock prices, and innocent investors may lose money because of these activities.
If you believe you lost money on an investment due to market manipulation, contact a New York stock market manipulation claims lawyer at Silver Law Group. Our securities class action attorneys are successful litigators who will explore all legal options to recoup your losses. We take cases all over the country and operate on a contingency fee basis.
Market manipulation is typically an attempt by shareholders to artificially influence the price of a specific stock to their advantage—they may try to increase the share price so they can sell at a profit or depress the price so they can buy at a favorable cost. Our stock market fraud attorneys in New York City can advocate for cheated investors in any situation where a market price has been affected by improper influence.
For example, a relatively small group of bad actors can work together to buy or sell a significant quantity of specific securities. An increase in trading activity in one market can influence trading in overseas markets, bringing the stock price up or down and allowing the manipulators to profit. Similarly, a group of shareholders could agree to place multiple buy or sell orders over a short period and then cancel some or all of the orders as the market responds to the heightened activity.
Pump-and-Dump Schemes are another form of market manipulation. They involve disseminating misleading statements about a company to inflate its share price. The fraudsters sell their shares as the price rises, making artificial profits at the expense of investors who rely on the false information.
It is difficult for investors to avoid falling victim to market manipulation. The plots are often sophisticated and believable, and take full advantage of trading technology and instant access to information. Market manipulation schemes can ensnare thousands of investors.
Filing an individual lawsuit is often not a cost-effective option for individual investors. However, U.S. securities laws allow bilked investors to bring a class action lawsuit as a group. This process is more efficient for all parties and ensures that even small investors have legal recourse if they are cheated.
When an investor in New York brings a lawsuit alleging market manipulation, they must publish a notice describing their claim. Others with similar claims can join them, and if the claims arise out of the same set of circumstances, a court will certify the lawsuits as a class action.
The court names a lead plaintiff to represent all the investors in the class action. The lead plaintiff is usually the investor with the most at stake, meaning the investor who lost the most money in the scheme. Investors other than the lead plaintiff do not take an active role in the litigation.
Any investor who bought or sold the stock during the period when the manipulation attempts were active is eligible to join the class action lawsuit. This is called the class period. Depending on the circumstances, the time frame can extend for days, months, or even years.
Some market manipulation class action lawsuits go to trial, but settlements are more common. A court must approve any settlement, and the judge sets the attorneys’ fees and costs. All the participants in the class action receive a distribution of the proceeds, with the amount each investor receives proportional to the amount they lost due to the scheme.
A skillfully executed market manipulation plot can fool any investor. If one of these schemes caused you to lose money, contact a New York stock market manipulation claims lawyer at Silver Law Group as soon as possible. Don’t let scammers unlawfully take the money you’ve rightfully earned. Contact us today to learn how we can help you hold market manipulators accountable. You pay us nothing unless we secure a financial recovery.
