FAQs

Answers To Your Questions

What is a class action?

A class action is a representative lawsuit that allows one person or entity to initiate a lawsuit on behalf of other persons or entities who are in the same or similar circumstances with respect to a given defendant. A class action is filed when the issues in a case apply to so many people that it is not practical for all of them to file their own individual actions.

When is a securities class action filed against a company?

Securities class actions are typically brought when: (a) a publicly held company and/or its officers, directors, employees, accountants or underwriters make an untrue statement of a material fact or omit to state a material fact in a publicly disseminated communication such as a press release, newspaper article, analyst report, prospectus, proxy statement or other SEC filings; and (b) as a result of the untrue statement or omission, the company’s stock traded at artificially inflated prices, injuring investors who purchased the stock during the class period.

What is a class period?

A class period is the period of time during which a company is alleged to have been engaged in improper conduct. The attorneys investigating and prosecuting the case will review the facts of the case and determine when the class period begins and ends. Sometimes, after an initial complaint is filed, a class period will be lengthened or shortened.

How do I know if I have a securities fraud claim?

If you purchased a publicly traded security, which has declined in price following a significant negative disclosure about the company, you may have a claim. Kaplan Fox can investigate the facts and advise you as to whether you have a viable securities fraud claim. If you wish to discuss your claim or have any questions concerning your rights in a securities fraud action, please e-mail us at mail@kaplanfox.com.

Do I have a claim if I sold my stock?

A valid claim in a securities class action depends on when the stock was purchased. If you purchased your stock during the class period and suffered losses as a result of the alleged fraud, you may have a claim even if you sold your stock.

Do I have to hold my stock once a securities class action is filed?

You do not need to hold the stock in order to participate in a class action or in a class action settlement.

What is a lead plaintiff?

A lead plaintiff is appointed by the court to take the lead in representing the interest of the class members. In a securities class action the lead plaintiff has the largest financial interest in the relief sought by the class. Lead plaintiff designation can be granted to individuals, groups of individuals or institutional investors.

How long does it take to prosecute a class action?

The time it takes to litigate a class action varies from case to case. However, most class actions take between two to three years to reach a conclusion.

What will it cost to be involved in a class action?

Kaplan Fox prosecutes class actions on a contingency fee basis. Thus, there will be no out-of-pocket fees for you, regardless of the outcome of the case. If we are successful in obtaining a recovery for the class, we will seek to be awarded fees by the court out of that recovery. Usually, attorney’s fees are awarded as a percentage of the recovery achieved by the attorneys for the class. These percentages can vary considerably based on the size of the recovery for the class, the length and complexity of the litigation, and several other factors. After weighing these factors, the court determines our fee.

Why should I sign up with Kaplan Fox?

Kaplan Fox is a law firm with substantial experience representing investors is class action suits. With approximately 20 attorneys, our firm is able to form close relationships with our clients, and also ensure the involvement of senior, highly experienced attorneys in each and every matter. Over the past thirty years, the firm has represented numerous clients in class action securities litigation. Kaplan Fox has recovered hundreds of millions of dollars on behalf of aggrieved investors in cases where the firm acted as lead or co-lead counsel.