Class action litigation allows a group of people who suffered similar harm to join as plaintiffs in a single lawsuit. When the plaintiffs are shareholders who suffered financial losses due to fraud or corporate misconduct, the timeframe is a critical factor because a Court may deny a claim that was not timely filed.
Class periods in securities class action litigation are generally the timeframes in which buyers and sellers of the stock might have been unfairly influenced or defrauded. A person can join the class action if their losses occurred within this time period, so please consult with our securities fraud class action attorneys on whether your actions allow you to join a securities fraud suit.
When a shareholder believes corporate wrongdoing caused them to suffer financial losses, they should engage the securities fraud attorneys from Silver Law Group to pursue a lawsuit against the company. Frequently, when the first plaintiff to file a class action under the federal securities laws must publish a notice in a national publication describing the claim, and provide a description of the alleged malfeasance and the timeframe in which it occurred. Others who suffered similar harm in the same timeframe can apply to be lead plaintiff in the lawsuit.
The timeframe is critical. It is presumed that shareholders who bought or sold their holdings during the time the alleged misconduct was occurring were influenced in their decision by the misconduct. They can directly tie their losses to the misconduct.
The court generally selects the lead plaintiff who suffered the largest losses and whose claims are typical of the claims other plaintiffs filed. The judge then determines whether the claims should be consolidated as a class action, which is called certifying the class. They consider whether the plaintiffs have substantially similar claims and whether the issues that are common to the entire class predominate over individual issues. If so, they will consolidate the class and the case will proceed.
The period when alleged wrongdoing was occurring at the company is the class period for the purposes of a securities fraud case. In representing plaintiffs, Silver Law Group uses available information to determine the class period, which could be relatively short or as long as several years.
Our knowledgeable lawyers review publicly available materials, press releases, corporate reports, trading activity, minutes of board meetings, and other records to estimate when the misconduct was occurring. The first instance of misleading communication is generally the start of the class period, and the date when the company issues a corrective disclosure is usually the end of the class period.
The initial plaintiff sets the class period in their court filing and disseminates it in the notice of filing. However, the class period can be shortened or lengthened as more information becomes available. Sometimes companies issue multiple partial corrective disclosures, which can complicate the determination of the end date.
Unlike other types of class action lawsuits, potential claimants do not need to opt in. Anyone who bought or sold the securities during the class period is generally a member of the class.
When there is a settlement or verdict in favor of the plaintiffs, a class member may need to prove their eligibility to receive compensation. Copies of brokerage statements that show a transaction during the designated class period are the types of materials used to determine whether someone is a member of the class.
If corporate malfeasance caused you to lose money on your investments, you are entitled to compensation and Silver Law Group is ready to help you succeed. Class periods in securities class action litigation are important for determining which investors may participate in the lawsuit. Reach out to our law firm today to learn more about your right to join this litigation.
