Securities class actions are lawsuits filed on behalf of a group (“class”) of investors, who have bought shares in a company and suffered losses as a result of fraudulent manipulation or another violation of laws regarding publicly traded securities.
This is another area of commercial litigation that is on the rise across Vancouver and BC, particularly in instances where the value of the stock has been artificially inflated by a company and people have suffered economic losses.
Claims that make it to court generally reach a settlement that may consist of a payment of cash, stock, or a combination of both. This is generally distributed to the class in proportion to losses suffered by each plaintiff. Such cases may, however, take years to resolve if they go to trial.