Yes. A securities case alleges that corporate executives lied and caused you to purchase your shares for more than they were worth at the time. Since the case alleges past wrongdoing, nothing you do in the future, be it holding, selling or purchasing additional stock in the Company, will affect your rights in the lawsuit.
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How much of my losses can I expect to recover?
Every case is different and the outcome of an individual case is unpredictable. Therefore, the Law Offices of Howard G. Smith makes no promises regarding recovery. However, historically, if the Law Offices of Howard G. Smith takes on a case, Mr. Smith will obtain a recovery approximately 75% of the time, and shareholders who file …
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How are my losses calculated?
Generally, the law calculates your losses by deducting from the amount that you paid for shares that you purchased during the class period the amount that you sold those shares. If you have not sold all the shares that you purchased during the class period within three months following the end of the class period, …
Do I need to join the lawsuit to recover my losses?
No. You are automatically a passive litigant in every lawsuit filed against the Company, and you will be a passive litigant in the consolidated case against the Company. As a passive litigant, you are eligible to recover your losses if the case is successful. However, you will have no say in the litigation and will …
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Why do I want to be the lead plaintiff?
If you lost an amount of money that is significant to you, then you want to be the lead plaintiff because you would rather have control over the litigation than to allow someone else to represent your interests. Also, often the court will compensate the lead plaintiff with a monetary award, in addition to their …
What is the lead plaintiff?
The lead plaintiff is the person that the court appoints to act as the representative of all aggrieved shareholders. The lead plaintiff will make all litigation decisions for the class including whether to settle the case and for what amount. The lead plaintiff is the only shareholder who will know what is happening with the …
How long does the litigation take?
Generally, the litigation takes 2-3 years from start to recovery.
How does the court choose the lead plaintiff?
Generally, the court will choose as the lead plaintiff the shareholder with the largest financial loss in the stock who applies to be the lead plaintiff before the deadline.
How does a securities fraud class action case work?
An aggrieved shareholder will file a lawsuit on behalf of themselves and all other shareholders similarly harmed by the actions of the wayward corporate officers. The lawsuit asks the court’s permission to allow the plaintiff to represent all other aggrieved shareholders. However, there may be other aggrieved shareholders who also wish to represent all aggrieved …
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If the shareholders win the securities class action case, who pays?
Sometimes, shareholders who continue to hold their shares are concerned that the lawsuit will negatively financially affect the Company moving forward. However, if the shareholders win the case, in almost all instances the wayward officers have Directors and Officers (D and O) Insurance available to pay the recovery. Therefore, the securities case will have little …
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