Securities class action refers to the cases that are being filed on behalf of hundreds of people who are victims of investment fraud. Securities class action suits result in the refund of money that has been decided upon by the judge or settled between the two contesting parties. The reimbursement of the settled money largely depends upon the individual losses suffered by the members of the contesting parties.
A class action is a representative action wherein one or more plaintiffs actually named in the complaint, along with their counsel pursue a case for themselves and the defined class against one or more defendants. The claims of the “class representatives” must arise from facts or law common to the class members. Most class actions are called “plaintiff class actions;” however, in limited circumstances a class action can be filed against one or more defendants representing a group of defendants, i.e., a “defendant class” action.
There are certain points that need to be taken into consideration while serving as the plaintiff. The person who acts as a lead plaintiff has to have extensive familiarity with the litigation. All the case related documents need to be preserved and served to your law firm. The lead plaintiff has an obligation to participate in the discussion related to settlement of offerings.
In a class action for money damages, lawyers who represent the class are generally paid out of the recovery, i.e., “common fund” they create for the plaintiff class. In class actions involving declaratory judgments or injunctive relief, lawyers may be paid by the plaintiffs that hired them, or in some cases, by the defendants if the plaintiffs win.
If you believe you have been taken advantage of, contact us right away. We can help you know if you have a legitimate securities fraud case.
