Institutional Investors Taking The Lead

The federal law governing securities fraud class action litigation encourages institutional investors to serve as lead plaintiffs. And the benefits of lead positioning – in determining the course of the litigation and outcome – are plentiful. The terms of any settlement are strongly influenced by the lead plaintiff, and significantly larger settlements have been the trend when institutional investors have assumed the lead position. Assuming this role also allows the institutional investor to communicate an aggressive stance to its stakeholders on issues of corporate ethics, organization and governance. However, Kaplan Fox recognizes that seeking lead plaintiff status may not be suitable for every client and we advise our clients of all of their alternatives.

Kaplan Fox is selective about the cases they bring. Prior to advising a client on a case, Kaplan Fox will thoroughly investigate potential claims and will recommend prosecuting only those cases that have the highest potential for success or those in which serious corporate governance is at stake. Kaplan Fox bases its fees exclusively on its success on behalf of its clients.