Securities class actions are lawsuits by groups of shareholders seeking compensation for losses they suffered in the financial markets. These suits allege that wrongdoing by publicly traded companies or third party professional’s such as lawyers, auditors, or banks led to the shareholder’s losses.
Class action lawsuits are a cost-effective way for people who were cheated by fiduciaries and others to hold them accountable and receive their deserved compensation. There are many types of securities class action lawsuits that exist, please contact Silver Law Group to learn about your legal rights and find out whether there is an ongoing class action lawsuit you can join or start.
People depend on accurate information when deciding where to invest their money. Corporations or their agents sometimes release inaccurate information to fraudulently mislead potential or existing investors. If an individual or entity used false or misleading information to influence investors, those who were cheated of their money can work with Silver Law Group and bring a class action lawsuit to recover what they lost.
Investors, analysts, due diligence experts and others depend on a company’s financial statements to determine the financial strength of a company. Companies sometimes use improper accounting practices to inflate their revenues or minimize their losses. These practices can make a company seem more attractive to investors who will ultimately lose their money.
Influencing stock prices through the release or intentional leaking of information is market manipulation. Another form of market manipulation happens when someone makes multiple transactions or falsifies quotes and trades to make it appear the stock is active in the market. The apparent activity can induce investors to buy, pushing demand for the stock up to artificial levels. The investors who bought at the height of the market may find that they lose their money when the stock price eventually adjusts.
Another common type of securities class action lawsuit involves Pump-and-Dump Schemes. Investors who possess holdings in a company engage in this scheme when they amplify false statements about its performance to artificially inflate the price and “pump” up the price of the stock. They then sell their shares at the higher price for substantial profit, harming those who were lured into that stock.
Corporate leaders sometimes engage in actions that can cheat unwary investors out of their money. One very common form of misconduct involves making fraudulent statements in the corporate registration documents, quarterly and annual reports, or on earnings calls. If a lawyer or auditor fails to prevent or identify this kind of action, or even participates in it, that individual might be a potential target for a class action lawsuit.
Hedge funds are private investment firms that offer opportunities to accredited investors or other sophisticated investors. These investors are typically institutions and very high net worth individuals. Hedge funds are not as tightly regulated as other investment firms, so mismanagement and fraud sometimes go undetected until investors lose their money.
Cryptocurrency fraud is becoming more rampant in the U.S. as well, with several high-profile prosecutions of people involved in the cryptocurrency market. Many investors have lost substantial funds in cryptocurrency scams, opening up the possibility of a class action.
When you invest your hard-earned money, you have a right to expect full and accurate accounts of a business’s financials. If you lose money because of intentional misconduct, manipulation, or misleading information, you deserve to be compensated for their unlawful behavior.
Silver Law Group represents people nationwide in all types of securities class action lawsuits. Reach out to our team today to find out if there is a pending or potential class action that can provide financial justice.
