Frequently Asked Questions

Levi & Korsinsky, LLP is committed to educating investors about their rights and protecting shareholder interests. Scroll down for the answers to many of the questions investors have asked our team. If you don’t see your question answered here, feel free to call us at 212-363-7500. We are always happy to speak with you!

What is a Securities Class Action Lawsuit?

A securities class action, or securities fraud class action, is a lawsuit filed by investors who suffered economic injury due to transacting in a company’s securities within a specific timeframe and as a result of violations of the securities laws.


What is a class period and how are the dates chosen?

The class period is the timeframe during which a company allegedly violated securities laws. The class period generally begins on the day the alleged violations began and ends the day the truth is fully disclosed to the investing public. Usually, a company’s stock price will drop steeply after a damaging truth is revealed.


What documents do I need to provide?  

To properly calculate your losses, we require details of all transactions you made in the affected company from the beginning of the class period until the day you are submitting your information. Note that we cannot use the gain/loss statement generated by your broker, as these statements usually show an average, rather than exact, price per share, which can throw off the calculation of your losses.  When providing your data, be sure to include all transactions, including purchases, sales, options, etc. For each transaction, we will need to see:

  • the type of transaction (purchase, sale, etc.)
  • the trade date (not the settlement date)
  • the exact price per share
  • the quantity of shares transacted

If you transacted in options, we will also need the opening date, strike price, expiration, etc.  If you are unsure of which dates or transaction types you need to gather, please feel free to either send us all your transactions in the stock or call us so our team can assist you.


How long do these cases take?

On average, these cases take two to four years to resolve. Because there can be long periods between filings and updates, we recommend that you log in to CORE (Compensation Recovery) to get signed up for email alerts.

How do I know if I am included?

Investors who are represented in the lawsuit are called “class members”. In order to be a class member, you must have incurred a loss on shares of the company purchased or acquired during the class period.


What if I have not sold my shares?

A “paper” or “unrealized” loss means that you still own shares in the company, but those shares are worth less than they were when you purchased them. Generally, investors with unrealized losses will be included as class members, provided they acquired those shares within the class period.


What if I invested in options or held my shares in a 401k?

As long as your shares were acquired during the class period and you incurred a loss, you are a class member. In addition to purchases, an “acquisition” can include: reinvested dividends, 401k contributions, employee compensation grants, spin-offs, etc. Trades in options will need to be evaluated for inclusion based on the specifics of the case and class definition, so please feel free to reach out to one of the lawyers or paralegals at Levi & Korsinsky to find out if you are a class member.


What is a Lead Plaintiff and why would I want the courts to appoint me as one?

Before a securities class action can be litigated, the court must appoint a shareholder to make decisions for the entire group of wronged investors. This shareholder is called a lead plaintiff. They will have substantial monetary losses and must be willing to act in the best interests of all class members. The lead plaintiff is responsible for consulting with and overseeing the attorneys, approving filings, and approving any settlements that may come about. Shareholders who want to have greater control over the litigation should consider asking the courts to appoint them as lead plaintiff. Additionally, because they usually have more significant losses and have actively participated in the case, lead plaintiffs may (at the Court’s discretion) receive a greater portion of the settlement than the average class member.


Will my name be public if I decide to move as a lead plaintiff?

Yes, your name will be public if you decide to move as lead plaintiff- documents filed in court are public record, and news sites may report on cases. That being said, most news sites are concerned with defendants’ wrongdoing and the potential consequences of the case’s outcome, not the plaintiff’s identity. Being a lead plaintiff in a securities class action is fairly routine and does not carry a stigma.


What does it cost me to be part of this lawsuit?

Nothing! There is no cost to be a class member or lead plaintiff. Levi & Korsinsky works on a contingency basis- meaning not only do we advances all out-of-pocket costs for our clients, but we only get paid if a case is settled or we win at trial. If a case is settled or wins at trial, our fees and expenses will only be paid after being reviewed by the court, and they will be paid from the recovery, not from your portion of the settlement. We will never ask you for money- we take the risk so you don’t have to.


I see many firms posting notices about this action. Is it all the same case? Do I need to submit to everyone? 

Once a class action lawsuit is filed, shareholders have 60 days to ask the courts to appoint them lead plaintiff. During these 60 days, multiple firms will notify potential plaintiffs of the upcoming deadline, but not every firm will have filed a separate case against the company in question. After contacting numerous investors, each firm will put forward their lead plaintiff candidate to the courts, and the courts will determine who is the best choice for lead plaintiff. The firm that represents the chosen lead plaintiff will represent the entire class of wronged investors, regardless of whether those class members have contacted that firm. You do not need to submit to every firm to participate – you are automatically included in the class action if you meet the class definition and have a loss.


I am not a U.S. Citizen. Can I still be a lead plaintiff?  

Absolutely! Levi & Korsinsky represents clients all over the globe. As long as your shares were transacted on the U.S. markets, you are eligible to be a lead plaintiff. If you are not fluent in English, but are still interested in the lead plaintiff role, we can fully accommodate your needs. We have staff fluent in multiple languages, and if necessary, we can provide a translator at no cost to you.  

 

On average, these cases take two to four years to resolve. Because there can be long periods between filings and updates, we recommend that you log in to CORE (Compensation Recovery) to get signed up for email alerts.

 

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