FREQUENTLY ASKED QUESTIONS

What is a class action?
A class action is a lawsuit in which a class representative sues on behalf of a group of people with the same or similar legal claims (known as The "class"). It is a procedure for handling lawsuits that affect large numbers of people who have been similarly injured by a company's unlawful conduct, but whose individual claims are too small to justify filing their own individual actions.

What is a class period?
A class period is the period of time during which a company is alleged to have engaged in improper conduct. Generally, the plaintiff's counsel determines when the class period begins and ends. During the course of litigation, the class period may be lengthened or shortened based on additional information uncovered.

What is a class representative or named Plaintiff?
A class representative is a person who sues on behalf of himself or herself, as well as on behalf of the class who have suffered as a result of the same misconduct. Class representatives must meet specific guidelines set by the court to ensure they adequately represent the interest of other class members, and that any resolution will be fair for all class members.

What types of claims are typically brought as class actions?
Generally speaking, legal claims are brought as class actions when the similarities between the claims of the members of the class outweigh the differences, or if a decision about the rights of one class member would automatically affect the rights of the other class members. Claims handled by Abbey Spanier and typically brought as class actions include:
Violations of the federal securities laws
Violations of duty owed by corporate officers to stockholders
Antitrust
Product liability
Consumer fraud and false advertising
Privacy

Do I have to pay attorneys' fees and expenses to participate in a class action?
Abbey Spanier typically prosecutes class actions on a fully contingent basis. Rather than charging attorney fees or litigation expenses, our fees and reimbursement of our expenses are usually entirely dependent upon producing a successful outcome for the class. If we are successful in obtaining recovery for the class, the firm will seek approval by the judge of a fee and expense award to be paid out of the recovery.

SECURITIES CLASS ACTION FAQs

What is a securities class action?
A securities class action is a lawsuit filed by a group of investors who have suffered economic loss from their investment in a stock, bond or other security as a result of corporate fraud and other violations of securities law. Securities class actions are typically brought by one or more investors in the stock, known as "lead plaintiffs," on behalf of other stockholders who have suffered economic losses during the period of time when it is alleged that a company's stock price is inflated by fraud.

What is a lead plaintiff?
A lead plaintiff is a person or group of individuals or institutional investors appointed by the court to oversee the litigation and act as a representative for the class. In a securities class action, the lead plaintiff is typically the person or party that has the largest financial interest in the outcome of the case and is, as determined by the court, the plaintiff most capable of representing the interests of the class members.

How do I know if I have a securities fraud claim?
You may have a securities fraud claim if you have suffered economic losses as a result of purchasing shares in a company during the period of time in which a fraud or securities law violation artificially inflated the stock's value. Abbey Spanier’s attorneys are available to discuss a pending case or investigate a potential securities class action for you, free of charge. You can contact us by e-mail (at info@abbeyspanier.com) or by phone (at 212-889-3700 or 800-889-3701).

Do I have a claim if I sold my stock?
Whether you have a valid claim depends on the purchase and sale date of your stock. If you purchased your stock during the class period and suffered losses as a result of the alleged fraud, you may have a claim.

What is the Certification Form?
In order to join a securities class action as a lead plaintiff or class representative, you are required to complete and sign a certification form, which you can download from our website and return to us by fax (at 212-684-5191) or by mail (at Abbey Spanier Rodd & Abrams, LLP, 212 East 39th Street, New York, New York 10016). You can contact us with any questions regarding the completion of the form by e-mail (at info@abbeyspanier.com) or by phone (at 212-889-3700 or 800-889-3701). Once you submit the completed certification form, you are retaining the firm to represent you and authorizing us to file a complaint or Lead Plaintiff Motion on your behalf. You also must verify that you meet certain conditions set forth by the courts, including:

You did not purchase the security in order to participate in the litigation
You have actually suffered damages as a result of the fraud
You are willing to serve as class representative and, if necessary, will be available to testify at a deposition or at trial
You agree not to accept any payment for serving as class representative beyond your pro rata share of any recovery and, possibly, any reasonable costs and expenses directly relating to the representation of the class

Should I sign up with more than one law firm?
No. Signing up with more than one law firm is unnecessary and may lead to confusion. Ultimately, all class actions against the same defendant for the same misconduct will be consolidated into a single case before a single judge. The court-appointed lead plaintiff or lead counsel will oversee the litigation and represent the class, working in conjunction with the other law firms involved. Regardless of the law firm you choose, your role in the class and share of recovery should not be affected.

How long does it take for a securities class action to be resolved?
The time it takes to litigate a securities class action varies from case to case. Some cases are resolved early in the process, while others can take two to three years, or more, to become final. The length of time it takes for a case to be resolved depends on a number of factors, such as the nature of the case, the court and the behavior of the defendants. At Abbey Spanier, we work hard to ensure cases proceed as quickly as possible and to obtain maximum recovery for our clients.

How much can I expect to recover if the action is successful?
As a member of the class, you are entitled to a partial share of the total recovery. However, the amount of your specific recovery cannot be determined until litigation is under way and will depend on a range of factors, including the total amount of the recovery, the size of the class and the defendant's ability to pay.

How long will it take to receive my share of any recovery after I send in my claim form?
It generally takes nine to twelve months to receive your share after the deadline for submission of claim forms.