A securities class action is a lawsuit filed by one or more investors in a particular stock or security who have suffered financial loss as a result of unlawful stock manipulation or other violations of federal or state securities laws. The suit is filed on behalf of all other investors who purchased shares in the same company during the period of time the value of the stock was artificially inflated by fraud or securities laws violations.

Federal securities laws, which were enacted to ensure honesty and integrity within the securities markets, require full and fair disclosure of all significant facts regarding public companies. When full and fair disclosure is not made, the public company and/or one or more of its officers, directors, or advisors may be in violation of the federal securities laws. In the absence of full disclosure, the company may be subject to a class action by investors who purchased the company's securities at artificially inflated prices, resulting in financial damage to the investors.

Securities class actions join in a single action the claims of multiple shareholders, for each of whom the time and expense of an individual lawsuit would be prohibitive. The typical securities class action takes approximately two to three years from initial filing to settlement, judgment or dismissal. According to estimates, between 10 and 20 percent of all securities class action lawsuits are dismissed, while more than 80% are settled out of court, and less than 1% go to trial.

If you’re an investor who has suffered a financial loss as the result of fraudulent activity, you may have the basis to initiate or join a securities class action claim. ARONOVITZ JAFFE can help you to win compensation for your losses. We have years of experience trying complex civil litigation, pursuing justice for our clients, protecting their rights, and fighting to win the compensation they deserve. Call our office at (305) 372-2772 or email info@aronovitzlaw.com today for a free evaluation of your complaint.