Securities Fraud Litigation

What is a securities fraud?

Generally, when an officer of a publicly traded corporation lies on the corporation’s financial statements the officer is committing securities fraud. This is typically done for the purpose of increasing the value of the corporation’s stock, or to keep the value of the stock from decreasing.

Why do corporate officers commit securities fraud?

A corporate officers’ main responsibility is to maximize the value of his corporation’s stock. Additionally, most corporate officers own many shares of their corporation’s stock. Generally, an officer lies either because he is doing a bad job, and he wants to keep his job, or he lies because he wants to keep the price of the stock high long enough for him to sell his own shares at a high price. The practice of a corporate officer lying to keep the value of his or her corporation’s stock artificially high, and then selling his personal portfolio of stock at its inflated value is commonly called “insider trading.”

How does securities fraud hurt me?

If you purchase shares of stock in a company affected by securities fraud you are hurt because you are paying more for the stock than it is really worth.

What can I do if I am the victim of a securities fraud?

If you are the victim of a securities fraud, you can recover your money by joining a class action lawsuit against the corporate officers that defrauded you. If the lawsuit is successful at trial, or if a settlement is reached, you will recieve compensation.

What is a class action lawsuit?

A class action lawsuit is a lawsuit where one investor in a representative capacity or many investors harmed by corporate fraud join together to sue the officers that defrauded them. The defrauded investors join together to sue the officers that defrauded them because it would not be economically feasible for each defrauded investor to separately sue the officers that defrauded him or her.

How can I join a class action lawsuit?

You can join a class action lawsuit simply by filling out a form online. You may also call the Kendall Law Group, PLLC, at 877-744-3728. A securities class action lawyer will personally explain to you how to join the lawsuit and answer any questions that you may have.

What is expected of me if I join a class action lawsuit?

Sometimes, absolutely nothing. You will be asked to provide documentation that you purchased the stock on the dates and in the amounts that you say you purchased the stock.

Does it cost me anything to join the class action lawsuit?

No. Kendall Law Group will never ask you for any money and will cover any cost or expense of litigation from its own funds.

Why should I consider applying for lead plaintiff status?

The lead plaintiff is a proactive member of the plaintiff class who acts as a representative party for all of the shareholders. He/she/they are the client(s) with whom counsel will consult during the litigation. Lead plaintiffs are appointed by the court, and they are in charge of the lawsuit.

Why are there so many law firms involved?

It is typical in securities class action lawsuits that several law firms will file similar complaints. This is because different shareholders contact and retain different law firms to pursue the same matter. Generally, the cases will be consolidated and heard in one court as one lawsuit, with a law firm or small group of firms appointed as “lead counsel” for class action plaintiffs.

I acquired my shares in my 401(k) or IRA account. Can I still participate?

Yes, as long as the shares were acquired during the class period.

I made money on some purchases of these shares during the class period, and lost money on others. Can I still participate in the lawsuit?

If your overall investment in XYZ stock during the class period resulted in a loss (realized or not), generally you may participate in the lawsuit.

Can I participate in the securities lawsuit even though I purchased additional shares before or after the class period?

Yes. Only shares purchased during the class period are covered by the litigation. However, at times, the class period may be lengthened or shortened, depending on various factors. Generally, purchases on sales of the stock before or after the class period are not relevant to your eligibility to participate in the lawsuit, although in some circumstances, if you had an overall net gain on your transactions over various periods, you might not be eligible to recover damages.

How long will the lawsuit take before it is resolved?

Each case is different, however a typical class action will take 2-3 years.

What is a claim form?

A claim form is the court-required document that all class members file to participate in a court-approved settlement or trial recovery.

What is a settlement notice?

A notice which describes the terms of a settlement and outlines the rights of the class members under that settlement.

How much money will I receive?

The damages paid to shareholders depends greatly on the amount of total loss suffered by all class members; the agreed settlement or court-ordered judgment; and sometimes the number and amount of claims submitted.

Will I have to testify?

Probably not, unless the court appoints you lead plaintiff. The lead plaintiff(s) generally testifies on behalf of the class.

If I complete the online form to seek to participate as a lead plaintiff, do I have to sell my shares?

No. You do not have to sell your shares to participate in the lawsuit.

I live outside the United States. Can I still participate?

Probably, as long as you purchased stock during the class period. Some classes are defined only to include U.S. residents, but most are unrestricted.

Can I participate in more than one class action at a time?

Yes, if you had losses in different stocks for which securities class actions have been filed.