When individual investors lose money due to the fraudulent acts or omissions of others, it doesn’t always make sense for them to file an individual lawsuit. The cost of legal action can be significant compared to the amount  you might recover from a successful lawsuit.

A securities class action lawsuit is often a viable, cost-effective, and convenient alternative. Cheated investors band together to sue the fraudsters, sharing the expense and the payout in proportion to the amount they lost. Silver Law Group has an extensive record of success pursuing compensation for investors who were scammed.

Compensation for securities fraud class action lawsuits has been increasing over the past few years. Investors who participate in a successful class action can expect to recoup at least some of their losses with no up-front expenses.

How the Securities Fraud Class Action Lawsuit Works

Securities fraud typically ensnares multiple investors. When the first lawsuit is filed, the attorney representing the investor must publicize the lawsuit.

Other lawsuits are consolidated into the first suit, and eventually a judge decides whether the plaintiffs in the various lawsuits have claims arising out of the same set of circumstances. If so, the judge will certify a class action, and every investor who held the stock in a specific timeframe is automatically included in the class.

The investor with the most to lose, usually an institutional investor, is the named lead plaintiff who manages the litigation and decides whether to settle. Other investors need not take any action until they receive notice of a settlement. Silver Law Group can represent both institutional and individual investors looking to be compensated.

Securities Fraud Class Actions Usually End With Settlements

There are several points in the securities fraud lawsuit process where a judge might dismiss the case. When the lawsuit survives the defendants’ motions to dismiss and the judge certifies the lawsuit as a class action, the parties frequently discuss whether a settlement is reasonable.

The negotiation process can take a long time, depending on the complexity of the allegations and the amount at stake. The parties typically work with a mediator to arrive at a settlement package that serves the interests of most investors.

When a settlement is reached, the impacted investors are notified. They can choose to participate in the settlement or opt out and pursue an individual lawsuit. Any investor considering whether to participate in a class action settlement should discuss their options with Silver Law Group.

Determining Compensation In A Class Action Lawsuit

The plaintiffs in a class action lawsuit do not split the settlement proceeds equally. Generally, each person receives compensation proportional to the amount they lost due to the fraudsters’ acts or omissions.

Legal fees are paid from the settlement. Rule 23 of the Federal Rules of Civil Procedure requires the judge to approve the amount of legal fees the plaintiffs will pay. Once legal fees and litigation costs are deducted from the settlement, the rest is distributed to class members who confirmed their participation in the settlement.

Settlements are generally paid on a pro rata basis, with each investor recouping approximately the same percentage of their investment. Settlements may not be sufficient to repay each investor the full amount they lost, but distributing the settlement on a pro rata basis allows every class member to receive a portion of their lost funds.

Contact Silver Law Group When Seeking Compensation In A Securities Fraud Class Action Lawsuit

Individual investors who lost money due to securities fraud may not have the time, energy, or funds to pursue an individual lawsuit. Class actions provide a mechanism for victims of investment fraud to get back some of their money without paying additional fees or expending much effort.

Talk to one of our attorneys at Silver Law Group about your experience. They can explain the details of getting compensation for securities class action lawsuits and you can decide what is right for you. We are a national law firm representing people from across the U.S.