Q: What is a securities class action? How would I find others to file together with me?
A: A securities fraud class action is a lawsuit filed by one or more investors who bought or sold a company’s securities within a specific period of time (known as a “class period”) and suffered economic injury as a result of violations of the securities laws. In cases involving misleading statements or omissions, a class period generally starts when a company makes an untrue statement of material fact about the company or fails to disclose a material fact necessary to render other statements not misleading. The class period generally ends when the truth is fully disclosed to the investing public. The plaintiff(s) that bring the action are supposed to be similarly situated; that is, they suffered damages from the same or substantially the same core set of facts. In order to bring a class action, you need to hire a lawyer. It is illegal for a non-lawyer to represent other non-lawyers. A lawyer with experience litigating securities class actions will know how to notify potential class members of the pendency of a class action or of the investigation of a company and its officers and directors for the potential filing of a class action.
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