Securities fraud can impact investors across the spectrum, from huge institutions to retirees with small portfolios. In all cases, fraudsters can be held liable for the losses innocent investors suffered. However, especially for smaller investors, the expense of an individual lawsuit may discourage them from taking legal action. Participating in a class action lawsuit is an alternative. These cases are frequently handled on a contingency fee basis.
If you are the victim of securities fraud, talk to an attorney at Silver Law Group. We are a nationwide firm that has built its reputation advocating for investors with excellent results. Scott Silver and the team can explain the benefits of a securities class action lawsuit and help you decide whether a class action is the best option for you.
Some investments do not pan out as hoped, and most investors understand and accept that. However, investors have the right to expect honesty and fair dealing. Investors’ trust is key to healthy financial markets.
When individual investors lose money due to the wrongdoing of those with a fiduciary duty, they may lose faith in the markets. A class action lawsuit gives them an outlet to recoup their lost investment and demand accountability.
Once fraud is exposed, anyone who held securities in the company during the period when the fraud was active potentially has a claim. When a class action lawsuit results in a settlement, even smaller investors will recoup a portion of their lost investment.
Being the plaintiff in a lawsuit is stressful. You must compile documents, make sworn statements, submit to depositions, and have your every word and deed challenged by a defense lawyer. Class action lawsuits proceed differently. One or more plaintiffs who were most impacted by the fraud are the named plaintiffs. They direct the litigation and may have substantial responsibility.
The burden on other investors who are members of the class is minimal. You will need to prove you owned the securities during the class period, which is the timeframe when the plaintiffs allege the fraud was active. Otherwise, one benefit of a class action is you have limited responsibilities until the parties reach a settlement, at which point you will need to decide whether you want to participate in the settlement.
The most attractive aspect of a securities fraud class action lawsuit may be that there are no costs to participate. This type of contingency fee lawsuit is accessible to all investors, including those with little disposable income and a modest portfolio.
Silver Law Group does not charge investors participating in securities fraud lawsuits until the matter settles. When the fraudsters agree to pay an appropriate settlement, the attorneys submit their claim for payment to the court for approval.
Sometimes a judge orders the fraudster to pay the plaintiffs’ lawyers and the litigation costs in addition to the settlement. More often, attorneys’ fees and expenses are deducted from the sum the fraudster agrees to pay. The balance is generally distributed to the plaintiffs on a pro rata basis.
A securities fraud lawsuit is a big undertaking that requires a substantial expenditure of time, money, and energy. For many individual investors, the potential reward doesn’t justify all that you have to put into it individually. As experienced securities litigators, we advance the costs and are only paid if we successfully recover money for you and the class.
Class action lawsuits allow all investors who were impacted by the fraud to hold the liable parties accountable with little effort and no up-front expense. Speak to an attorney at Silver Law Group about the benefits of a securities fraud class action today.