What Is A Class Action?
Class actions are lawsuits brought in federal or state courts by a representative plaintiff on behalf of groups of similarly situated persons. Historically, a class action is a litigation procedure that allows a representative with typical claims to sue or defend on behalf of, and stand in judgment for, a class when the issues or questions are of common interest to persons so numerous as to make it impracticable to bring them all to court.

How Are Individuals Benefited By Class Actions?
There are numerous advantages to individuals by bringing a class action instead of an individual action. The major advantage of bringing a class actions is the more powerful litigation posture for the class representative. Because of the greatly expanded exposure to liability for class damages (damages to potentially hundreds or thousands of individuals), as opposed to the damages suffered by a single litigant, a defendant is much more likely to treat the litigation seriously from the standpoint of defense or settlement than would likely be the case in an individual litigation. Furthermore, because the potential for an award of attorneys' fees is greater in a class rather than an individual litigation, attorneys are more likely to work on a contingent basis which means an individual can avoid the often prohibitive expense of paying legal counsel fees. Additionally, there are a number of other jurisdictional, venue, and service benefits to utilizing the class action device.

What Types Of Claims Are Brought In Securities Fraud Class Actions?
Claims brought in securities fraud class actions generally allege that the market price of a company's securities was artificially inflated during the class period as a result of material misrepresentations or omissions of fact made by corporate officials in their offering documents or other public statements. These cases may also involve claims of improper insider sales by corporate officials while in possession of non-public adverse facts where they realize monetary gains at the expense of the public shareholders.

Who Brings Class Actions?
Any individual, company or institution who has standing (e.g., has been harmed or injured by a particular person or entity in violation of a law or laws) and, in general, who has claims that are typical of other class members, has no conflicts of interest with other class members, and has retained competent, experienced counsel, can bring a class action.

What Does It Mean To Be A Class Representative In A Class Action?
At the outset, the class representative must have meritorious claims worthy of litigation. Since the class representative is prosecuting his or her own claims as well as the claims of similarly situated class members, the claims of the class representative must be "typical" of the claims of the class. The class representative must be reliable and available. He or she must be knowledgeable about the lawsuit, including having familiarity with the complaint and the various papers filed during the course of the action. The class representative must be available to consult with his or her attorneys regarding the status of the case, and be available to execute affidavits and appear at trial if required.

If I Have Been Wronged, How Do I Bring A Class Action?
Please contact Schoengold Sporn Laitman & Lometti by telephone at (800) 348-7700, e-mail at info@spornlaw.com or facsimile (212) 267-8137.

Will I Have To Pay Anything If I Bring A Class Action?
If you bring an action and you are represented by Schoengold Sporn Laitman & Lometti, we will prosecute the action on a contingency basis, you will not have to pay any out-of-pocket attorneys' fees or expenses. Schoengold Sporn Laitman & Lometti will seek reimbursement solely from the Court if and when it recovers monies or other benefits for the interests of yourself and the Class.

If I Find Out That A Stock I Bought Isn't Worth What I Paid, Does That Mean That I Can Recover From The Company In A Securities Fraud Class Action?
In order to recover money in a securities fraud class action, there must be a deception, which deception may be either willful or reckless. In this regard, an omission of a material fact can be as misleading as a false statement.

Is It True That Shareholders Only Get A Few Dollars While The Attorneys Get Most Of The Money From An Award Or Settlement?
This rumor is totally false. Any class action fee awarded to attorneys must, by law, be approved as "fair, reasonable and adequate" by the court after a full hearing open to any class member who wishes to attend. Additionally, all class members must be given reasonable advance notice of the hearing at which the amount of attorneys' fees is determined.

In general, attorneys' fees are awarded as a percentage of the benefit achieved by the attorneys for the class. While these percentages vary depending upon, among other factors, the size of the recovery for the class and the length and complexity of the litigation, the percentages typically fall within the 15% to 30% range of the recovery for the class. Thus, class action attorneys only get paid if they recover a benefit for the class, and get paid only a fraction of the benefit that the class receives.

When Should I Contact Schoengold Sporn Laitman & Lometti If I Think That A Class Action Would Be Appropriate?
Immediately. Even a slight delay may work to your disadvantage and prejudice your rights.

What Services Does Schoengold Sporn Laitman & Lometti Provide?
Schoengold Sporn Laitman & Lometti will counsel you on your loss, we handle any securities litigation matter from inception to conclusion.

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