Securities Class Action Lawsuits To Join : What Investors Need To Know

Securities class actions (SCA) or securities fraud classes actions are lawsuits filed by investors who purchased or sold publicly traded securities of a company within a specified time period (known as a “class Period”) and suffered economic injuries as a consequence of securities laws violations.

A class period is generally established in cases that involve misleading statements or omissions. It begins when a company makes a false statement of material facts about it or fails to disclose a material truth necessary to make other statements not misleading.

The truth is generally disclosed to all investors at the end of the class period. A “corrective disclosure” is a statement or action that discloses the truth about an alleged misstatement, omission or other error. There is typically one final corrective disclosure during the class period. In more complex cases, there may be several partial corrective disclosing partial truths about the alleged misstatements and omissions.

“Cases can be brought under Federal Rule of Civil Procedure 23, on behalf of a class of persons who bought securities of a company during a specific period of time (the Class Period).

Private Securities Litigation Reform Act of 1995 (PSLRA), encouraged institutional investors to become lead plaintiffs in securities class actions. This was done “to shift power between shareholders, class action lawyers, and shareholders by allowing investors suffering the greatest losses to have control of the case.” Around forty percent of all securities fraud cases involve a lead plaintiff from a public pension or labor union fund. Institutional investors have relied on the portfolio monitoring services provided by class action law firms of plaintiffs to find “loss recovery possibilities” since the passage and implementation of the PSLRA.

How Will I Be Notified Of A Class Action?

Investors who are eligible to join a class usually receive notification after a judge has deemed the case a class action. Notices are sent to shareholders at the addresses on file by the company. Typically, the court will also send notice by mail. You do not need to take any action once you are identified as part the class. If you haven’t been notified, you can ask the law firm handling the case about any questions regarding the class action.

Other ways you can learn about a Class Action case is to check with a Securities Class Action Attorney’s website, join a mailing list or stay up to date on relevant stock and shares websites.

7 Securities Fraud Examples

Securities fraud, also known as investment or stock fraud, is a serious white-collar crime. It involves misrepresenting information that investors use to make their decisions. Here are 7 Fraud Examples:

1. Investments of investors misappropriated or misdirected

Misappropriation–i.e., theft– is a particular risk for those who invest through brokers and advisors. This is true for both cash and securities held in investors’ accounts. Managers of employer-sponsored retirement programs misdirecting employee contributions to unauthorized accounts is another example of investment fraud

2. Insider Trading

Insider trading is when industry insiders use non-public information for decisions about buying and selling company stock. Trading on inside information can bring in substantial profits for corporate insiders (including board members, accountants and lawyers). This type of trading is done at the expense of retail investors. A Goldman Sachs employee was recently charged by the SEC with using client information about account mergers and acquisitions in order to trades in anticipation these corporate moves.

3. False or misleading information

Investors have the right to all information necessary to make informed decisions about investing. You may have a case for securities fraud if you receive false or misleading information from a company about its finances and business prospects.

4. Omitting Material Information

Omitting information about investments is another form of securities fraud. Brokers and financial advisors could leave out information about the company’s risks, risks associated with particular investment strategies, conflicts of interest, and the fees that brokerage firms or advisory firms will charge. Brokers are required to disclose all risks involved in an investment.

5. Offer or promote unregistered securities

The United States generally requires that all securities be registered unless there is a special exemption. Private placements exempted from registration, for instance, are subject to specific restrictions that prohibit them being sold or marketed to more than 35 accredited investors. Accredited investors are usually financially ready to take on substantial risk. Securities fraud has increased in popularity over recent years. Unregistered sales of equity in startup ventures or promotion of unregistered ICOs are two examples.

6. Unsuitable investment advice, unauthorized trading and excessive fees

Broker and advisor fraud can be described as providing unsuitable investment advice, unauthorized trades, or charging excessive fees. Others include failing to diversify (overconcentration), failing to execute trades and forgery.

7. Ponzi Schemes, Market Manipulation, and Other Fraudulent Investment Scams

Fraudulent investment scams, in addition to the many examples of securities fraud mentioned above can cause significant financial losses to unsuspecting investors. These include market manipulation, Ponzi schemes, and pump-and dump schemes.

Ponzi schemes: Brokers may claim that funds from investors will be used for legitimate business ventures. However, these funds could pay off previous investors or just line the pockets of fraudsters.

Market manipulation is when an insider increases or decreases the value of a security.  The manipulation involves buying or selling trades near the end the trading day in order to increase the price.

Pump-and dump schemes: These schemes encourage celebrities and influencers to invest in products, only to then sell their shares after the price has risen. Many smaller investors are left with nearly worthless or non-existent investments as a result.

7. Examples of Individuals and Companies Who Commit Securities Fraud

Investors who have suffered losses from securities fraud may be able to file claims against many different parties depending on the facts. These investors have been the targets of investment fraud claims that our attorneys filed and won. These are just a few examples:

1. Brokerage and Stockbrokers

Many investors trust stockbrokers and brokerage companies. They often find their trust in brokerage firms and stockbrokers is misplaced. Stockbroker fraud is quite common. There are specific types of fraud that include omitting information about investments or engaging in conflicts-of-interest transactions. Many investments come with large commissions for brokers, but no benefit to investors. Brokerage firms could be held responsible for failing to supervise their brokers and can also be subject to vicarious liability for the negligent or wrongful acts of their brokers

2. Investment Advisors and Advisory Companies

SEC-registered financial advisers must adhere to the same securities laws that brokers. Investment advisors could be sued for everything from giving unsuitable advice to excessive fees and account churning

3. Companies that are publicly traded

Securities fraud is when publicly traded companies release misleading or false information, or withhold information that could affect investors’ decision to buy or sell securities. Investors can pursue class or collective action lawsuits against large publicly traded companies that have been accused of securities fraud. Investors who don’t wish to participate in class actions can seek the assistance of a securities attorney or FINRA arbitration to recover their losses.

4. Private Companies

Unregistered offerings can be used by private companies to commit securities fraud. Private companies may commit securities fraud by offering unregistered offerings. There are exceptions to the registration requirements (i.e. private placements that are offered to accredited investors), but many private companies don’t take the necessary steps to obtain these exemptions.

5. Managers and executives of companies

Securities fraud can be committed by corporate executives and other insiders by encouraging the publication of misleading or false information, and engaging in insider trading. Securities fraud has been committed by plan managers who breached their fiduciary duties and misdirected and misappropriated retirement assets of employees, as well as failing to take the necessary steps to prevent losses.

6. Influencers, public figures and community leaders

Recently, the SEC increased its efforts to target celebrities and athletes who encourage fraudulent online investments. In many cases, investors can file claims against the individuals. Unfortunately, securities fraud committed by community leaders or other people in positions of trust and confidence is quite common.

7. Scam Artists
 

Scam artists are not the only ones who commit securities fraud schemes. These scammers prey on inexperienced and vulnerable investors and are becoming more sophisticated. Many of these characteristics are common to securities fraud scams. A fraudulent offering is often identified by high-pressure sales tactics or promises of guaranteed returns.

Victim of Securities Fraud? What You Can Do Now!

Help is available to help fight against your losses. Here are the next steps you can start:

Statements And Records

Scam artists are not the only ones who commit securities fraud schemes. These scammers prey on inexperienced and vulnerable investors and are becoming more sophisticated. Many of these characteristics are common to securities fraud scams. A fraudulent offering is often identified by high-pressure sales tactics or promises of guaranteed returns.

Document The Timeline

Spend some time writing down your concerns about securities fraud. What was the first time you became concerned? What was the tipping point? What communication have you had since? The more information you can capture, the better.

Learn About Your Options

Find out your options for recourse if you have been the victim of securities fraud. In some cases it may be necessary to go to court. Talk to a Securities Class Action Attorney to learn more about your options.

Protect The Assets You Still Hold

You should do everything you can to ensure that your assets are protected. The nature of the investment and the amount of fraud involved will determine the options available to protect your assets. A securities fraud attorney can help you if you have any questions.

Talk To A Securities Attorney

A Securities Fraud Attorney can help you recover fraudulent investment losses. To check if your investment has a class action, visit the cases page. You can register through the link. If you do not see your ticker symbol, contact Levi & Korsinsky ([email protected]) at no cost to you and understand your rights and available options. You can also request information to be kept up to date for any relevant securities class action 2023

Class Action Lawsuit List –  Time From First Complain Filing To Class Certification Decision

Source: nera.com

class action lawsuit list 2023

Class Action Lawsuits are a legal tool shareholders have to stand up for their rights against companies who have mislead them and caused the shareholder financial damage.