11/13 An Overview to Securities Laws (an article by FindLaw.com)
What is the number one question we are asked by investors who contact our firm when a new securities case is filed? Why do securities class actions take so long to reach a settlement or reach some other type of resolution? Therefore, we decided to write this article to explain the lengthy process each and every securities lawsuit goes through before it ever reaches the point of a possible settlement. Click here to see the full article, which will hopefully answer questions you may have with respect to securities class actions. We hope to keep adding articles of interest to investors.
Investors in the stock market should know the purpose of a securities class action based upon fraud allegations, the underlying purpose for filing this type of litigation, and the rules governing such litigation. Typical securities fraud class actions involve “alleged” misrepresentation during a specific period of time regarding a company’s operations, financial performance or future prospects that inflate the price of the company’s stock in secondary trading markets. In these “fraud on the market” class actions, plaintiffs’ attorneys sue the corporation and its officers under Rule 10b-5 of the Securities Exchange Act of 1934, which was a huge, sweeping piece of legislation, but […]
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