Publicly traded companies have an obligation to ensure all public statements they make about the company are accurate and true. Unfortunately, companies sometimes use their public statements to mislead people and individual investors can get burned by inflated stock prices.
If you sold or bought stocks based on information the company released that turned out to be untrue, you might have a valid claim against the company, its Board of Directors, and top executives. Chances are good that other investors suffered similar losses.
Talk to the securities class action attorneys at Silver Law Group about this type claim. We’re experienced investor advocates who can help you pursue your claim, regardless of where you live.
According to 17 Code of Federal Rules § 240.10b-5, a fraudulent statement is any misrepresentation or omission of relevant information involved in the sale or promotion of stock. The fraudulent statement could be made in a press release, interview, public call, or other statement released by the company or by its CEO, other top management official, or Board of Directors.
The fraudulent statement could relate to any issue that is expected to influence whether to buy or sell stock in the company. Examples include misstating profits, failing to disclose significant liabilities or obligations, providing misleading information regarding future prospects, or offering incomplete or inaccurate descriptions about the product.
Violating the rule can lead to civil liability for fraudulent statements. The company could owe money to the investors who prove they suffered losses from false information or a material omission.
There are specific elements an attorney must typically prove to show the defendants were liable for investors’ losses. It’s not enough to prove that the defendants made a misstatement or omission. Lawyers must also present evidence showing that the:
The Silver Law Group is adept at compiling the evidence needed to prove all elements of a fraudulent statements claim. However, the majority of securities fraud litigation claims never get to the trial stage. Defendants often settle rather than face the uncertainty and delays associated with taking a matter to trial.
If you bought or sold stock based on fraudulent statements, you may not be alone. Multiple investors can band together and pursue class action litigation against the company that made the fraudulent statement.
When an investor files a claim alleging securities fraud, they must publish a public notice describing the claim. Other investors with similar claims who bought or sold within the same timeframe will then file their own claims, and courts usually consolidate them. When the court affirms that the investors’ claims are substantially similar, it will certify a class and the litigation goes forward as a class action.
Class action lawsuits are a cost-effective way for an individual investor to pursue a claim against fraudsters. Litigation costs are typically deducted from the settlement or verdict, so there should be no cost to participate. Proceeds from the lawsuit are shared among all members of the class.
When you were misled into buying or selling a stock because of a fraudulent statement and you lost money on the deal, you might have a claim against the company. When other investors suffered losses for the same reason, a class action is usually the ideal method.
The Silver Law Group team members are passionate advocates for investors all over the U.S. and you deserve to get your money back for the fraud perpetrated onto you. Call us today to get started pursuing your claim.
