Frequently Asked Questions

A securities class action, or securities fraud class action, is a lawsuit filed by investors who suffered economic injury due to transacting in a company’s securities within a specific timeframe and as a result of violations of the securities laws.

The class period is the timeframe during which a company allegedly violated securities laws. The class period generally begins on the day the alleged violations began and ends the day the truth is fully disclosed to the investing public. Usually, a company’s stock price will drop steeply after a damaging truth is revealed.

To properly calculate your losses, we require details of all transactions you made in the affected company from the beginning of the class period until the day you are submitting your information. Note that we cannot use the gain/loss statement generated by your broker, as these statements usually show an average, rather than exact, price per share, which can throw off the calculation of your losses.  When providing your data, be sure to include all transactions, including purchases, sales, options, etc. For each transaction, we will need to see:
- the type of transaction (purchase, sale, etc.)
- the trade date (not the settlement date)
- the exact price per share
- the quantity of shares transacted

If you transacted in options, we will also need the opening date, strike price, expiration, etc.  If you are unsure of which dates or transaction types you need to gather, please feel free to either send us all your transactions in the stock or call us so our team can assist you.

On average, these cases take two to four years to resolve. Because there can be long periods between filings and updates, we recommend that you log in to CORE (Compensation Recovery) to get signed up for email alerts.

Investors who fall within the applicable class definition are called “class members.” To be included as a potential class member, you generally must have purchased or otherwise acquired the company’s securities during the applicable class period.

A “paper” or “unrealized” loss means that you still own shares in the company, but those shares are worth less than they were when you purchased them. Generally, investors with unrealized losses may still be included as potential class members, provided they acquired the securities during the applicable class period.

As long as your securities were acquired during the applicable class period, you may be included as a potential class member, depending on the class definition and the type of transaction or security involved. In addition to purchases, an “acquisition” can include reinvested dividends, 401(k) contributions, employee compensation grants, spin-offs, etc. Trades in options will need to be evaluated for inclusion based on the specifics of the case and class definition, so please feel free to reach out to one of the lawyers or paralegals at Levi & Korsinsky, LLP to discuss whether your transactions may fall within the applicable class definition.

A Lead Plaintiff represents the interests of themselves and the other members of the class (i.e., shareholders in the company being sued). The main benefits of being the Lead Plaintiff are:

(1) you have a say in how the litigation goes (e.g., whether to accept a settlement offer);
(2) you are kept in the loop with what goes on in the case throughout the whole lifespan of the case (2-3 years);
(3) if successful, we may ask the Court to approve reimbursement of reasonable costs and expenses, including lost wages where appropriate, that were directly related to your service as Lead Plaintiff. Any such reimbursement is subject to court approval and is not guaranteed.

Your primary responsibilities as the Lead Plaintiff are to represent the interests of the shareholder class and ensure that your lawyers at Levi & Korsinsky, LLP, if the firm is appointed to serve as counsel for the class, work to protect the interests of the class and pursue the litigation consistent with their professional obligations. We will update you from time to time about certain events in the litigation as it progresses and, if discovery is necessary, we will help you collect, review, and produce whatever materials are necessary (such as brokerage statements, research reports, and correspondence with brokers). If your presence is ever needed for a court proceeding, including a deposition, we will either make sure you can appear virtually or pay for all travel and travel-related costs.

There is generally no direct out-of-pocket cost to be a class member or seek appointment as lead plaintiff. Levi & Korsinsky works on a contingency basis and generally advances applicable litigation expenses. If a recovery is obtained, court-approved attorneys’ fees and expenses may be paid from the recovery before distributions to class members. You generally will not be asked to pay attorneys’ fees or litigation expenses directly.

Once a class action lawsuit is filed, shareholders have 60 days to ask the courts to appoint them lead plaintiff. During these 60 days, multiple firms will notify potential plaintiffs of the upcoming deadline, but not every firm will have filed a separate case against the company in question. After contacting numerous investors, each firm will put forward their lead plaintiff candidate to the courts, and the courts will determine who is the best choice for lead plaintiff. The firm that represents the chosen lead plaintiff will represent the entire class of wronged investors, regardless of whether those class members have contacted that firm. You do not need to submit to every firm to participate – you are automatically included in the class action if you meet the class definition and have a loss.

Yes. Non-U.S. citizens may be eligible to seek appointment as lead plaintiff. Levi & Korsinsky represents clients all over the globe. As long as your shares were transacted on U.S. markets, meet the applicable class definition, and were purchased during the proposed class period, you may be eligible to seek appointment as lead plaintiff, subject to other case-specific requirements and court approval.

If you are not fluent in English, but are still interested in the lead plaintiff role, we can fully accommodate your needs. We have staff fluent in multiple languages, and if necessary, we can provide a translator at no cost to you.

On average, these cases take two to four years to resolve. Because there can be long periods between filings and updates, we recommend that you log in to CORE (Compensation Recovery) to get signed up for email alerts.