SECURITIES & CONSUMER CLASS ACTIONS

A securities class action is a legal suit brought by a group of investors who claim they lost money due to a company’s alleged fraudulent or illegal activities related to its stocks or bonds within a specific period of time, known as the “Class Period.”

The Class Period is a specific time period during which the unlawful conduct is alleged to have occurred. The class period typically starts when the alleged fraudulent or illegal activity begins and ends when the public becomes fully aware of the truth. Often, the company’s stock price plummets after the truth is revealed. For example, in a securities class action, anyone who acquired securities of the defendant company during the Class Period is a member of the Class and eligible to participate in any recovery, if we are successful. Although the initial complaint will specify a certain Class Period, the Class Period may be expanded to encompass a longer period of time.

Investors who are involved in the lawsuit are called “class members.” To participate in the recovery, your overall investment in the stock during the Class Period must have resulted in a loss. You may sell your stock at any time and still participate in the recovery, so long as your overall investment resulted in a loss.

Near the beginning of a securities fraud case, the court appoints a Lead Plaintiff to prosecute the lawsuit on behalf of the class members. An individual plaintiff, a group of individuals, or another entity—an investment fund, for example—can serve as Lead Plaintiff. The court usually appoints the class member with the largest financial interest in the recovery sought by the Class to serve as the Lead Plaintiff.

As the Lead Plaintiff, you have several advantages:

• You play a key role in deciding how the lawsuit proceeds, such as whether to accept a settlement offer.
• You’ll be kept updated on the case’s progress throughout the entire process.
• You will be part of any negotiations to settle the case and the application for the award of legal fees.
• If the lawsuit is successful, the court may award you compensation for your time and expenses related to serving as the Lead Plaintiff. This is in addition to your share of the settlement, should the case succeed in reaching a settlement. The amount varies based on your involvement in the case.

Your main responsibility as the Lead Plaintiff is to represent the interests of all class members and ensure that our law firm, BG&G, does everything possible to maximize the recovery for the class. We’ll keep you informed about important developments in the lawsuit and assist you with collecting and reviewing necessary materials, such as brokerage statements, research reports, and correspondence with brokers. If you’re needed for a court proceeding, we’ll arrange for virtual appearances or cover your travel costs.

The federal securities laws require public notice to be published within 20 days after a securities fraud class action lawsuit is filed, alerting investors that the lawsuit has been filed and that class members have 60 days to request the court for appointment as Lead Plaintiff. In addition to representing the Class, the Lead Plaintiff plays a crucial role in selecting the court-appointed Lead Counsel and is encouraged to consult with the Lead Counsel concerning the course of the litigation. By seeking Lead Plaintiff status, and choosing skilled, experienced counsel to represent the Class, an individual class member may significantly affect the likelihood of the lawsuit’s success and the size of any eventual recovery.

The requirement to participate as a potential Lead Plaintiff is simple. Sign the Certification form, which you can either complete on our site or contact us at [email protected] to complete the forms. You can either send them back via email, by fax at (212) 697-7296, or by mail at 60 East 42nd Street, 46th Floor, New York, NY 10165.

Please provide all of your transactions in all of your accounts for the relevant security/securities for this class action. This includes all trades before, during, and after the Class Period. If you have more than 20 transactions, please provide a copy of your data in an Excel spreadsheet. Your transaction statement should include the following: Number of Shares/Contract/Transaction Type (Purchase, Sale, Transfer, Exercise, Assignment, etc.)/Trade Price/Security Type (ticker, common stock, option details, etc.) Your transaction statement should not include the following: Wash sales/Cost basis/Realized gain loss statements/Tax statements. Please provide your current holdings for the relevant security/securities for this class action.

These cases typically take between two and four years to complete.

A “paper” or “unrealized” loss means you still own the shares, but they’re worth less than when you bought them. If you have unrealized losses and bought the shares during the class period, you may still be included as a class member.

If you acquired the shares during the class period and incurred a loss, you are likely a Class Member. In addition to purchases, “acquisitions” can include reinvested dividends, 401k contributions, employee stock grants, spin-offs, etc. Options trades will be evaluated on a case-by-case basis to determine if they qualify.

There is no cost to you! Costs and expenses of the lawsuit are usually advanced by the law firms prosecuting on behalf of the Class. Our firm works on a contingent fee basis. That means we will ask the court to grant us reimbursement of our out-of-pocket expenses and attorneys’ fees – usually a percentage of the total recovery – only if we are successful. We never ask our clients for money for a securities class action case.

Once a class action lawsuit is filed, shareholders have 60 days to request to be the Lead Plaintiff. During this time, several firms may notify potential plaintiffs of the upcoming deadline. Each firm may propose their lead plaintiff candidate to the court to be appointed to serve as Lead Plaintiff. The court will select the best candidate to represent the class. The firm representing the chosen lead plaintiff will represent all Class Members – wronged investors – even if those investors didn’t contact that specific firm. You do not need to submit to any firm to participate – you’re automatically included in the class action if you meet the class definition and have a loss.

Yes! BG&G represents clients worldwide. As long as your shares were purchased on the U.S. exchange, you can be a Lead Plaintiff. If you don’t speak English fluently, we can provide a translator at no cost.