Why shareholders should participate in class action lawsuits
Securities class action litigation is an important part of the market system. Left unchecked, there would be no reason for executive managers to be committed to their fiduciary duty to shareholders, and to the law. In addition, the knowledge that such actions can be taken, should leave investors comforted about taking risks in new investments. In the case of fund managers, it is their fiduciary duty to attempt to recover the maximum possible for their clients.
There really isn’t any reason not to participate in class action litigation, unless you have a well thoughtout “opt out plan” with your learned counsel’s blessing. For the right Client, situation, the members of the firm have opted out large or unique claims, from bond purchasers in Worldcom to the largest shareholder in Digital Domain (co-ventured in part with the State of Florida). Digital Domain had many unique qualities : it was James Cameron’s former FX studio where the Titanic, Benjamin Button and many other famous movies were made (Cameron was not a party to the litigation as he had sold it in years past). It was also the first Companies to go public via an IPO and then seek Bankruptcy Protection in less than a year.
That said, if you have losses, realized or unrealized, and is a security where you suspect dishonesty, we are more than happy to look into the matter for you.
Send us a list of the symbols that have been nagging at you (of your perhaps have caused the clients to nag). It’s a wonderful response when you can respond with and “yes I’ve even asked a class action law firm to look into the matter.” (As former brokers (decades ago), and having represented brokers in disciplinary proceedings, we can say with certainty, a response like that would and has, prevented many problems. If you bought this for your client or a Fund, you now have a place to start. Even if you are a Trustee, Business Manager or beneficiary of a Pension Fund or Hedge Fund, the inquiry can start here. Just ask, as we have ongoing investigations of a multitude of companies at any one time.
What does into an investigation involve? Well, without sharing our proprietary formula, it involves everything from forensic accounting, witness interviews, former employees, client of Co interviews, fundamental analysis to analyzing shipping manifests for the true source country of a product. Again, it’s of no cost to you. We obviously this it for the goodwill generated with our longterm clients. We look forward to hearing from our future clients and are more than happy to help existing ones.
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