A securities class action is a lawsuit filed by a group of investors against a company and/or its officers that facilitated or aided and abetted one. The action alleges that these investors suffered financial losses due to misleading or false information provided by the company regarding their publicly traded securities.
For individual or institutional investors who have suffered extensive financial losses, opting out of a securities fraud class action settlement to instead pursue individual claims against potentially liable defendants could be a viable option. If you want to discuss a potential class action with an experienced securities fraud attorney, contact Silver Law Group today to discuss your legal options.
Any individual or entity who engaged in fraudulent misconduct in connection with the purchase or sale of securities could be liable in a class action. Examples of securities fraud that we handle at Silver Law Group includes:
Liable parties in a securities fraud class action could include brokerage firms, commercial banks, investment advisors, and investment banks, among others. When a group of investors recovers a successful securities fraud class action settlement, the compensation is typically distributed as a cash payment to eligible class members. The amount each person receives is generally based on the amount of money they lost during the class period.
There are numerous benefits associated with filing or joining a securities fraud class action rather than opting out and initiating individual litigation. By combining multiple claims, the cost of litigation is spread across all class members, making it feasible to pursue claims that might be too small to pursue individually. A class action lawsuit allows investors to pool their resources and exert greater pressure on the company than if they were to file separate lawsuits.
A successful class action can result in a larger settlement amount to more investors compared to individual claims, potentially providing meaningful compensation to investors. The threat of a class action lawsuit could even incentivize companies to adhere to securities laws and prevent future fraudulent activities. Class members do not need to actively participate in the lawsuit beyond opting in, thus minimizing the time and effort required to pursue a claim.
While class actions can be beneficial for many investors, settlements might not fully compensate all investors and may only provide a relatively small amount per individual for those with smaller claims. Investors typically have the right to opt out of a class action and pursue their own individual claim. To opt out of a securities fraud class action settlement, you must follow the instructions in the class action notice.
This usually involves submitting a written request by mail, email, or an online portal. If you opt out of a securities fraud class action lawsuit or settlement, you forfeit your right to participate in the class action or share in any settlement or judgment. You will then need to file your own lawsuit within the statutory deadlines.
There are numerous situations where opting out vs. joining a class action lawsuit can be advisable. For example, opting out could be a viable option if you:
Investors with significant losses may be better off filing their own case, such as institutional investors like banks, insurance companies, and mutual funds. Cases involving larger potential damages and complex allegations may also warrant an opt-out. It is best to consult with an experienced securities fraud attorney to determine your best legal options.
Opting out of a securities class action means that an investor chooses not to participate in the lawsuit or reap the rewards of the settlement, and instead files their own individual claim. The securities fraud attorneys at Silver Law Group have the knowledge and experience to advise injured investors on which option would best suit their legal interests. We tirelessly fight for our clients and can work to secure the maximum compensation you are owed.
Contact us today to begin your one-on-one free consultation with our legal team. We work on a contingency fee basis, so you do not pay us unless you win financial compensation.
