What You Need to Know About a Lead Plaintiff Motion in a Securities Class Action

9/21/2022

What Is a Lead Plaintiff Motion

In a securities class action, a “Lead Plaintiff motion” is a motion filed with the court which sets forth arguments as to why you should be appointed as lead plaintiff, who is responsible for hiring class counsel and litigating the case on behalf of the other class members.

What Is the Procedure for Becoming a Lead Plaintiff?

Under the Private Securities Litigation Reform Act of 1995 (“PSLRA) any investor who purchased and suffered losses in securities during the class period in the case, seek appointment as lead plaintiff the securities class action lawsuit. Under the PSLRA, after a complaint is filed, a plaintiff has no later than 20 days to circulate notice to shareholders about the filing of the complaint notifying shareholders that “not later than 60 days after the date on which the notice is published, any member of the purported class may move the court to serve as lead plaintiff of the purported class.” 15 U.S. Code § 78u–4(a)(3)(A)(i)-(iii.).

A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. 15 U.S. Code § 78u–4(a)(3)(B)(iii)(I)(bb)-(cc). A lead plaintiff is a fiduciary and acts on behalf of all other class members in directing the class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class action lawsuit.
An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff.

Conclusion

If you were the victim of securities fraud, or would like to know more about the PSLRA’s lead plaintiff provisions, or have further questions, contact Stock Loss Lawyer Timothy L. Miles today.

Timothy L. Miles, Esq.

Timothy L. Miles is a nationally recognized shareholder rights attorney raised in Nashville, Tennessee. Mr. Miles was recentely selected by Martindale-Hubbell® and ALM as a 2022 Top Ranked Lawyer, 2022 Top Rated Litigator. and a 2022 Elite Lawyer of the South. Mr. Miles also maintains the AV Preeminent Rating by Martindale-Hubbell®, their highest rating for both legal ability and ethics. Mr. Miles is a member of the prestigious Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association, a superb rated attorney by Avvo, a recipient of the Lifetime Achievement Award by Premier Lawyers of America (2019) and recognized as a Distinguished Lawyer, Recognizing Excellence in Securities Law, by Lawyers of Distinction (2019). Mr. Miles has published over sixty articles on various issues of the law, including class actions, whistleblower cases, products liability, and more.

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