FREQUENTLY ASKED QUESTIONS
1. Q. What is a class action?
A. A class action is a type of lawsuit that allows a person or entity to initiate and prosecute a representative lawsuit on behalf of other similarly situated persons or entities. It is frequently used when numerous people have been similarly affected by a company’s unlawful conduct.
2. Q. What is a class period?
A. A class period is a specific time frame during which a company is alleged to have been improperly conducting its business. The class period is specified in both the complaint and public notice. There is always the possibility a class period may be extended or shortened.
3. Q. What does it cost me to join a class action lawsuit?
A. Generally, there is no out-of-pocket cost to any class member regardless of the outcome. Zhang Investor Law works on a contingent fee basis, where the Firm pays all costs and expenses. If Zhang Investor Law is successful in obtaining a recovery on behalf of class members, it will ask the court to award the Firm fees and expenses from the recovery. The amount of the fee award will depend on a number of factors, including the size of the recovery and the duration and complexity of the litigation. The contingent fee is typically between 25% and 33% of the amount we recover for investors.
4. Q. I own stock in a company in which a class action was filed; am I part of the securities class action lawsuit?
A. If you purchased stock during the class period, then you are an investor for whom we are trying to seek a recovery. If the Firm is successful, you will be eligible to share in the recovery.
5. Q. Can I join a securities lawsuit if I purchased additional shares before or after the class period?
A. Yes, but only those shares purchased during the class period will be the subject of the litigation. At times, however, the class period may be extended to accommodate further findings in our ongoing investigation.
6. Q. I acquired my shares in my 401(k) or IRA account. Can I still participate?
A. Yes, if the shares were acquired during the class period.
7. Q. Why are there so many law firms involved?
A. It is typical in securities class action lawsuits that several law firms will file similar complaints. This is simply because different shareholders contact and retain different law firms to pursue the same matter. Generally, the cases will be consolidated and heard by the court as one lawsuit, with each of the law firms participating on behalf of their clients in a capacity to be determined by the court.
8. Q. What is a lead plaintiff?
A. A lead plaintiff is a person, group of persons, or entity that is appointed by the court to represent the interests of all class members. The lead plaintiff generally has the largest financial interest in the outcome of the case. The lead plaintiff works with the court-appointed lead counsel in determining how the litigation should proceed and eventually be resolved.
9. Q. Why should I apply for lead plaintiff status?
A. The lead plaintiff is a proactive member of the plaintiff class who acts as a representative party for all of the shareholders. He/she/they are the client(s) with whom counsel will consult during the litigation. Lead plaintiffs are appointed by the court.
10. Q. I made money on some purchases during the class period, and lost money on others. Can I still participate in the lawsuit?
A. If your overall investment in company’s stock during the class period resulted in a loss (realized or not), you may participate in the lawsuit.
11. Q. How long will the lawsuit take before it is resolved?
A. Each case is different; however, a typical class action will take 2-3 years.
12. Q. Can I sell my stock and still be a part of the lawsuit?
A. Yes. You can sell your stock and still share in any recovery, if your sale results in a loss. If you make money on the stock sale, you do not have a loss to recoup, and your claim will be excluded.
13. Q. What is a claim form?
A. A claim form is the court-required document that all class members must file to participate in a court-approved settlement. If you seek participation as a lead plaintiff or join our mailing list, this document will be mailed to you with a settlement notice.
14. Q. What is a settlement notice?
A. A settlement notice is a notice which describes the terms of the settlement and outlines the rights of the class members under that settlement.
15. Q. How much money will I receive?
A. The damages paid to shareholders depend greatly on the interest of the shareholders in the suit as well as the agreed settlement or court-ordered judgement.
16. Q. Will I have to testify?
A. Probably not, unless the court appoints you lead plaintiff. The lead plaintiff(s) generally testifies on behalf of the class.
17. Q. If I complete the online form, do I have to sell my shares?
A. No. You do not have to sell your shares to participate in the lawsuit.
18. Q. Why did I receive letters from different law firms?
A. You’ve received a letter of notice informing you of the pendency of a class action lawsuit brought by and on behalf of shareholders of a company you own(ed) stock in. You do not need to mail back the letters. To apply for lead plaintiff status, you need only complete and return one certification. You can do this online by selecting Securities Cases, then click Join This Action and complete the online certification. You may also contact us to join an action.
19. Q. If I made money on the stock, can I still participate?
A. No. The lawsuit is for shareholders who lost money on the stock during the class period.
20. Q. I live outside the United States. Can I still participate?
A. Yes, as long as you purchased stock during the class period.
21. Q. Can I participate in more than one class action at a time?
22. Q. Can I sign up for the same class action with two law firms.
A. No. You can retain only one law firm to represent you. Please sign up with only one law firm for the same class action.