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Securities Litigation

Let a Securities Litigation Lawyer Help With Your Investment Fraud or Other Securities Claim

Securities laws give investors important protections against a wide range of fraudulent behavior by businesses and executives. Whether it is through misinformation and accounting manipulation or Ponzi and pump and dump schemes, there are a number of ways in which fraudsters seek to get over on investors. Securities laws are an important tool for people and companies that have been impacted to recover their money.At Glancy Prongay & Murray, each securities litigation lawyer has a track record of success on behalf of individual and institutional clients. For years, our firm has been fighting to help clients hold fraudsters accountable through class action and other types of lawsuits.  Last year alone, our securities attorneys recovered $182 million in settlement money for clients.

Our firm has the resources and experience necessary to help investors take on large companies.  We often handle securities cases on a contingency fee basis.  That means we do not get paid unless our clients do. 

There is seemingly no end to the way in which some companies will resort to deceit and misinformation to defraud investors.  Below are some of the most common forms of securities fraud:

  • Accounting Manipulation: Some companies use slippery accounting methods to try to make themselves more attractive to investors.  That often includes inflating or exaggerating revenue.
  • Misappropriation of Corporate Funds: Corporate officials and board members often have broad access to company money.  They are banned from using it for their own personal gain or for any purpose that has not been authorized. 
  • Ponzi Schemes: These “house of card” arrangements commonly involve promises of big returns.  New investments are typically used to pay off earlier investors to maintain the façade of profitability, leaving later investors holding the bag.
  • Pumping and Dumping: These scams happen when someone artificially inflates the price of a stock with false or incomplete information about the company.  The stock promoter usually then sells the stock at a price above the market value before it inevitably takes a dive.
  • Insider Trading: Corporate officials and others are banned from using private information about their companies to trade stocks for their own personal gain.

Securities Class Actions

Class actions are a common and efficient way to handle investment fraud claims  These are collective lawsuits in which a group of individuals or entities join together in a single legal action against alleged wrongdoers.

There are several benefits to pursuing a class action rather than taking a securities fraud case through individual litigation.  A class action allows class members to spread the legal costs across the entire group.  It also gives people leverage by joining their claims together, regardless of the amount each individual has lost.

A seasoned securities litigation lawyer can help you weigh your rights and options, including whether to lead or participate in a class action.

Securities Litigation Class Action FAQs

What is a Securities Class Action?

A class action is a type of lawsuit in which a group of people or entities join together in a single action to assert their legal rights. Class actions are useful when a large number of people or entities have been harmed by the same or similar unlawful conduct. If a company issues false or misleading information, or omits material information, and shareholders’ investments are damaged as a result, shareholders can file a securities class action to attempt to recover their losses. 

What are the Benefits of Securities Litigation?

A securities class action allows shareholders to level the playing field with large companies by combining their individual legal claims. It also allows investors to pool the cost or risk associated with pursuing legal action. A securities litigation lawyer can help you determine whether to start, join or opt out of a class action.

What Kinds of Legal Remedies are Available in these Cases?

Securities class actions are designed to make shareholders “whole” or return them to the position they were in before the unlawful conduct occurred. This may include money damages to compensate shareholders for their loss, often paid in cash and/or stock to a common fund, and distributed to class members on a prorated basis. Although some cases go all the way to trial, many are often resolved through a negotiated settlement.

Who is in the Class?

Class members in securities cases are people or entities who purchased stock in the company accused of violating the law during a defined time period. Those investors are automatically considered part of the class, once a judge certifies – or approves – a proposed class. 

What is a Class Period?

The class period is a defined period of time during which the alleged unlawful activity took place. Only investors who purchased shares during this period may be considered class members.

How do I Prove Stock Ownership?

Class members often prove stock ownership through account statements from the broker through which they bought the stock. It is vital to maintain these records. An experienced securities attorney can help you determine whether you are a class member.

What if I Bought Shares Before or After the Class Period?

Only those investors who bought shares during the defined class period are eligible to participate as class members. In some cases, the class period may be extended or reduced during the litigation, depending on the circumstances. If you have a substantial loss before or after the class period, a securities attorney can help you determine whether expanding the class period is an option.

What if I Sold or Want to Sell My Shares?

You do not need to hold on to your shares in order to be a class member, as long as you purchased shares during the class period.

Who is the Lead Plaintiff in Securities Litigation Lawsuits?

The lead plaintiff in securities class actions is appointed by the court to represent the shareholder class, and is usually the person or entity with the largest financial interest in the outcome of the case, who also submits an application to be lead plaintiff. The lead plaintiff is often the class member that lost the most money, measured in total dollars, as a result of the alleged legal violation.

Class members have 60 days from the filing of the class action to file a request to be appointed as lead plaintiff. A securities attorney can determine whether your loss may be substantial enough to qualify you for appointment as lead plaintiff. 

How Can a Securities Litigation Lawyer Help?

A securities attorney can help investors bring a class action and advise shareholders considering whether to join an existing lawsuit.

At Glancy Prongay & Murray, we combine decades of legal experience in securities and other cases. In 2018, our class action lawyers obtained $182 million in settlements for investors.

Call us at (310) 201-9150 or contact us online to speak with a securities litigation attorney today. 


Court Recognition

“And without question, the Court is of the opinion that the value of benefit that’s been conferred to the class is extremely sizable and that this Court is certainly aware that the skill and efficiency of plaintiff’s counsel is what attributed to this settlement, and they are learned securities counsel. The Court is mindful of that, and as a result they were able to sort of weed their way through the complex issues in this case, and also to bring this about — bring about a settlement rather in short order as these matters go. So the Court certainly attributes that to counsel’s skill and efficiency, as well as the ability to work with the adversaries in this matter.”

–Hon. Susan D. Wigention, U.S. District Judge, District of New Jersey

“Class Counsel has conducted the litigation and achieved the Settlement in good faith and with skill, perseverance and diligent advocacy”

— Hon. Donovan W. Frank, U.S. District Judge, District of Minnesota

“The court finds that the Settlement Fund… created by Class Counsel is an exceptional result… The settlement is significantly above the average securities class action settlement when measured as a percentage of losses recovered… The court finds that Class Counsel, particularly Co-Lead Counsel, exerted tremendous effort on behalf of the class in the prosecution of this action… The Court finds that Class Counsel skillfully prosecuted this action, particularly given that this case was unusually complex relative to most securities fraud class actions. ”

–Hon. Dickran M. Tevrizian (Ret.), U.S. District Court Judge, Central District of California

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