When lawyers prosecute certain claims, they seek class action status for their lawsuits.
A "class action" is a civil suit brought by one or more people (lead plaintiffs) on behalf of themselves - and others who are similarly affected. To make it a "class action" the issues common to all the plaintiffs must be the most critical to the lawsuit.
Once the suit is classified by the court as a "class action" all of the claims against the defendants can be heard in a single trial.
Members of the class are given a deadline by which they may request that the Court appoint them as lead plaintiff of the class.
A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation.
Lead plaintiffs make important decisions which could affect the overall recovery for all members of the class, including settlement decisions.
The decision whether or not to seek appointment as a lead plaintiff does not affect a person's ability to share in any recovery.
The securities laws require the Court to consider the class members with the largest financial interest as presumptively the most adequate lead plaintiffs.
Most law firms now have a website set up to display relevant information about the action and allow viewing a copy of the lawsuit initiating the class action, or for more information about class action cases.
This information usually includes details of the case, its claims, and the plaintiffs' rights.
The basis of these class action lawsuits generally follow a familiar pattern.
In the case of securities fraud, they claim that the target entity
issued materially false statements in issuance of financial reports and other statements or in connection with acquisitions.
failed to disclose or misrepresented certain material adverse facts which were known to them
recklessly disregarded certain material adverse facts
exaggerated the ultimate size of the market for their product or service
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