Milberg | Your Questions Answered

Home > Your Questions Answered

Your Questions Answered

Q: I own XYZ stock and read that a securities class action lawsuit was filed. Am I part of the lawsuit?
A: If you purchased stock during the "class period" defined in the lawsuit, then you are an investor for whom we are trying to seek a recovery. If we are successful, you will probably be eligible to share in the recovery.
Q: What is a class action?
A: A class action is a type of lawsuit that allows a person or entity to initiate and prosecute a representative lawsuit on behalf of other similarly situated persons or entities. It is frequently used when numerous people have been similarly affected by a company's unlawful conduct.
Q: What is a class period?
A: A class period is a specific time frame during which a company or other defendants are alleged to have been making materially false public statements or omissions. The class period is specified in both the complaint and the notice published by plaintiffs when a securities class action complaint is filed. There is always the possibility a class period may be extended or shortened.
Q: What do I need to do to be included in the XYZ securities class action lawsuit?
A: If you purchased shares of the company's stock during the class period, and the case is certified as a class action, you will automatically be a class member unless you choose to exclude yourself at the time notice of the class action is distributed. Right now, if the case is still being organized, you can fill out an online certification form to seek participation as a "lead plaintiff", and at any time you can join our mailing list to keep abreast of developments.
Q: What is a lead plaintiff?
A: A lead plaintiff is a person, group of persons, or entity that is appointed by the court to represent the interests of all class members. The lead plaintiff generally has the largest financial interest in the outcome of the case. The lead plaintiff works with the court-appointed "lead counsel" in determining how the litigation should proceed and eventually be resolved.
Q: Why should I consider applying for lead plaintiff status?
A: The lead plaintiff is a proactive member of the plaintiff class who acts as a representative party for all of the shareholders. He/she/they are the client(s) with whom counsel will consult during the litigation. Lead plaintiffs are appointed by the court.
Q: Why are there so many law firms involved?
A: It is typical in securities class action lawsuits that several law firms will file similar complaints. This is because different shareholders contact and retain different law firms to pursue the same matter. Generally, the cases will be consolidated and heard in one court as one lawsuit, with a lawfirm or small group of firms appointed as "lead counsel" for class action plaintiffs.
Q: I acquired my shares in my 401(k) or IRA account. Can I still participate?
A: Yes, as long as the shares were acquired during the class period.
Q: I made money on some purchases of these shares during the class period, and lost money on others. Can I still participate in the lawsuit?
A: If your overall investment in XYZ stock during the class period resulted in a loss (realized or not), generally you may participate in the lawsuit.
Q: Can I participate in the securities lawsuit even though I purchased additional shares before or after the class period?
A: Yes. Only shares purchased during the class period are covered by the litigation. However, at times, the class period may be lengthened or shortened, depending on various factors. Generally, purchases on sales of the stock before or after the class period are not relevant to your eligibility to participate in the lawsuit, although in some circumstances, if you had an overall net gain on your transactions over various periods, you might not be eligible to recover damages.
Q: What does it cost me to join a class action lawsuit?
A: Generally, there is no out-of-pocket cost to any class member regardless of the outcome. Milberg primarily works on a contingent fee basis, where we pay all costs and expenses. If we are successful in obtaining a recovery on behalf of class members, we will ask the court to award us fees and expense reimbursement from the recovery. The amount of the fee award will depend on a number of factors, including the size of the recovery and the duration and complexity of the litigation. If you become a lead or named plaintiff in any class action and different rules apply, you will be informed about the situation by your lawyer handling the case.
Q: How long will the lawsuit take before it is resolved?
A: Each case is different, however a typical class action will take 2-3 years.
Q: What is a claim form?
A: A claim form is the court-required document that all class members usually must eventually file to participate in a court-approved settlement or trial recovery.
Q: What is a settlement notice?
A: A notice which describes the terms of a settlement and outlines the rights of the class members under that settlement.
Q: How much money will I receive?
A: The damages paid to shareholders depends greatly on the amount of total loss suffered by all class members; the agreed settlement or court-ordered judgement; and sometimes the number and amount of claims submitted.
Q: Will I have to testify?
A: Probably not, unless the court appoints you lead plaintiff. The lead plaintiff(s) generally testifies on behalf of the class.
Q: If I complete the online form to seek to participate as a lead plaintiff, do I have to sell my shares?
A: No. You do not have to sell your shares to participate in the lawsuit.
Q: I live outside the United States. Can I still participate?
A: Probably, as long as you purchased stock during the class period. Some classes are defined only to include U.S. residents, but most are unrestricted.
Q. Can I participate in more than one class action at a time?
A. Yes, if you had losses in different stocks for which securities class actions have been filed.