Class Action Lawsuit Lawyers — Bakhtiari & Harrison

Class action lawsuits — when they make sense for investors

A class action lawsuit allows a large group of investors who suffered similar losses from the same wrongful conduct to pursue their claims together — rather than each filing separately. Class actions are most effective when: individual losses are too small to make individual litigation economically practical; the wrongdoing affected a large number of investors in the same way; the legal and factual issues are common across the class; and the defendant is a public company or large institution with the resources to satisfy a substantial judgment.

Class actions are not always the best path for every investor. For investors with significant individual losses — typically above $100,000 — an individual FINRA arbitration claim or individual securities litigation may recover substantially more than participation in a class action settlement, because class action recoveries are divided among all class members and individual recovery may be a small fraction of actual losses. Bakhtiari & Harrison evaluates both options for every investor and recommends the path most likely to maximize recovery.

Class action vs. individual claim — which is right for you?

• Class action is typically better when: your individual losses are smaller (under $100,000), your losses resulted from a public company’s securities fraud affecting all shareholders, and participating in a pending class action requires no affirmative action on your part.
• Individual claim is typically better when: your individual losses are significant, your specific facts differ from the broader class, you have claims against parties not covered by the class action, or you need a faster resolution than multi-year class action litigation provides.
• Opting out of a class action: if you have significant individual losses and a pending class action exists, opting out of the class to pursue an individual FINRA arbitration or court claim may produce a substantially better recovery. The deadline to opt out is strictly enforced. Bakhtiari & Harrison evaluates opt-out decisions for investors with substantial losses.

For individual FINRA arbitration claims, visit the Securities Arbitration page. For individual court-based securities litigation, visit the Securities Litigation page.

Securities class actions

Securities class actions under federal law — primarily the Private Securities Litigation Reform Act (PSLRA) of 1995 — allow investors who purchased securities of a public company to pursue claims when the company or its officers made material misstatements or omissions in SEC filings, earnings releases, or public statements that artificially inflated the stock price, causing losses when the truth was revealed.

Securities class actions are filed in federal court and are subject to heightened pleading standards under the PSLRA. A lead plaintiff — typically the investor or institutional investor with the largest losses — is appointed to represent the class. Bakhtiari & Harrison represents both institutional and individual investors seeking lead plaintiff status and has served as lead counsel in securities class action proceedings.

Common securities class action scenarios

• Accounting fraud: a company misrepresents its financial results — overstating revenue, understating liabilities, or concealing losses — causing investors to purchase shares at inflated prices.
• Insider trading and selective disclosure: company insiders trade on material non-public information before a negative announcement, while public investors are kept in the dark.
• Material misstatements in public offerings: a company’s IPO or secondary offering documents contain material misstatements or omissions — giving rise to claims under Sections 11 and 12 of the Securities Act of 1933.
• Failed mergers and acquisitions: a company’s board or management makes materially misleading statements in connection with a merger or acquisition, causing shareholders to approve the transaction or sell at an undervalued price.

Consumer class actions

Bakhtiari & Harrison also represents consumers in class action litigation involving deceptive business practices, false advertising, data breaches, consumer financial products, and violations of California consumer protection statutes including the Consumer Legal Remedies Act (CLRA), the Unfair Competition Law (UCL), and the False Advertising Law (FAL). California’s strong consumer protection framework makes it one of the most favorable jurisdictions for consumer class action litigation in the United States.

Employment class actions

The firm represents employees in employment class actions involving wage and hour violations, meal and rest period violations, misclassification of employees as independent contractors, and other systematic violations of California Labor Code and federal employment law. Employment class actions in California can be particularly significant because of the Private Attorneys General Act (PAGA), which allows employees to recover civil penalties on behalf of the state for Labor Code violations.

The class action process — what investors need to know

1. Case evaluation. Bakhtiari & Harrison evaluates the potential class action claim — identifying the class, the wrongdoing, the legal theories, and the potential recovery.
2. Filing and class certification. The complaint is filed in state or federal court. The lead plaintiff moves for class certification — the court’s determination that the case can proceed as a class action on behalf of all similarly situated investors.
3. The parties exchange documents and take depositions. Securities class actions involve extensive document discovery from the defendant company and its officers.
4. Summary judgment and trial preparation. The parties brief dispositive motions. The vast majority of class actions settle before trial.
5. Settlement or trial. If the case settles, the court must approve the settlement as fair and reasonable for the class. Class members receive notice and an opportunity to object or opt out. If the case does not settle, it proceeds to trial.
6. Settlement proceeds are distributed to class members who submit claims. Individual class member recoveries depend on the size of their holdings and the total settlement amount.

Why choose Bakhtiari & Harrison for class action litigation

• Lead class action counsel experience. The firm has served as lead class action counsel in federal and state court securities class actions — not merely as participating counsel.
• California Corporate Securities Law expertise. California state law class actions under the Corporate Securities Law of 1968 offer advantages over federal PSLRA class actions in some circumstances. The firm evaluates both.
• Individual claim evaluation. The firm evaluates every investor’s situation to determine whether individual FINRA arbitration or court litigation will produce a better outcome than class participation — and advises accordingly.
• $250 million+ recovered. Four decades of results for investors in class actions, FINRA arbitration, and individual securities litigation.
• Contingency fee representation. No recovery, no fee. Initial consultations are free.

Frequently asked questions — class actions

How do I know if there is already a class action pending for my investment losses?

Class action filings are public record and are reported by securities law news services such as Securities Class Action Clearinghouse (maintained by Stanford Law School) and various investor news services. If you have suffered losses in a publicly traded security, Bakhtiari & Harrison can determine at the initial consultation whether a class action is pending and whether participation, opting out, or an individual claim is the better path for you.

Do I need to do anything to participate in a securities class action?

Generally no — if you fall within the class definition you are automatically a class member unless you opt out. To receive a distribution from a settlement you typically must submit a claim form within the deadline set by the settlement administrator. However, if your individual losses are significant, you should consult with an attorney before the opt-out deadline to evaluate whether an individual claim would be more advantageous.

What is the lead plaintiff and how is it determined?

The lead plaintiff is the class member who acts as the representative of all class members and who selects lead counsel for the class. Under the PSLRA, the court appoints the lead plaintiff — typically the investor or group of investors with the largest financial interest in the case. Bakhtiari & Harrison assists investors seeking lead plaintiff appointment in securities class actions.

Can I file an individual claim if I already received a class action settlement payment?

Generally no — participating in a class action settlement and receiving a distribution releases your individual claims against the defendants covered by the settlement. This is one reason why investors with significant individual losses should consult an attorney before the opt-out deadline rather than after. Contact Bakhtiari & Harrison promptly if you have significant losses and are uncertain whether to participate in a pending class action.

Contact a class action lawyer — free consultation

Contact Bakhtiari & Harrison for a free, confidential consultation. Our FINRA attorneys review every potential case at no charge.

Investor cases are handled on a contingency fee basis — no recovery, no fee.

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