Corporate Fraud Cost Investors Billions of Dollars Each Year
Every day, headlines reveal instances of corporate misconduct that costs investors hundreds of billions annually. The government lacks the resources to police all the companies traded on America’s stock exchanges, so investors must be vigilant in protecting their assets. Corporate fraud affects investors large and small, those new to investing and long-time players, and can be blatantly obvious or designed to go undetected. Unfortunately, no shareholder is immune, and greed keeps fueling corporate executive behavior as evidenced by repeat offenses by companies that continue to act fraudulently time and time again.
What is Securities Fraud?
The Securities Act of 1933 and the Securities Exchange Act of 1934 require that companies whose stocks trade on national exchanges, as well as their officers and directors, provide the investing public with complete and accurate information regarding their companies. Securities fraud occurs when corporate executives disseminate false information that seeks to manipulate financial markets. Shareholders are injured when they rely on this false information to inform their decision about purchasing a company’s stock.
Types of Securities Fraud Include:
- Fraudulent misstatements
- Insider trading on information not known to the investing public
- Ponzi and pyramid schemes in which money from new investors is used to pay the returns promised to prior investors
- Pump-and-dump schemes in which people use Internet chat rooms and forums to spread fraudulent information about stocks with the intent of increasing the price of the stock allowing them to “dump” their stock at an unreasonably high price
What is a Securities Fraud Class Action?
A securities fraud class action is a lawsuit filed by investors who bought or sold a company’s stock within a specific period of time (known as a “class period”) and suffered economic injury as a result of violations of the securities laws. A class period generally starts when a company makes an untrue statement of material fact about the company or fails to disclose a material fact necessary to render other statements not misleading. The class period generally ends when the truth is fully disclosed to the investing public.
Shareholders Have Rights
Robbins LLP is committed to the principle that the directors and managers of publicly traded corporations should be held accountable to the owners of the enterprise – the shareholders. It is critical that shareholders activate their litigation rights to protect their financial interests when corporate executives act to the detriment of their investment. Defrauded stockholders can bring a securities fraud class action when they lose money as a result of the intentional concealment, omission, or manipulation of financial information by a public company. A securities fraud class action allows stockholders who would never bring an individual action to seek recovery from the wrongdoers without having to individually retain a lawyer and pay legal fees.
An Answer for Defrauded Shareholders
Our firm’s experienced attorneys include former federal prosecutors, defense counsel from top corporate law firms, in-house counsel from leading financial institutions, and career shareholder rights litigators. Our attorneys have litigated in almost every state in the country and are not intimidated by power financial players or an uphill battle. We have:
- Successfully prosecuted securities fraud class actions that have recovered millions of dollars for stockholders who lost money as a result of violations of securities laws
- Served as co-lead counsel in recovering $61.5 million for Titan corporation shareholders following alleged misrepresentations by certain officers and directors of the company regarding the company’s financial health and compliance with the Foreign corrupt practices act in one of the largest securities fraud class action recoveries in San Diego history
- Served as lead counsel to secure almost $6 million on behalf of stockholders who purchased Star Scientific, Inc. stock based on misrepresentations that John Hopkins University School of Medicine was involved in the clinical development and testing of the company’s main product, which was made to secure the equity financing the company needed to stay in business
No Cost Representation
What does it cost to bring a securities fraud class action? Nothing. Robbins LLP represents shareholders on a contingency fee basis, meaning we advance all attorney’s fees and expenses incurred by the litigation. If we are successful in obtaining a monetary recovery or substantial non-monetary benefit for the corporation or the shareholders we represent we will seek to have the court approve our attorney’s fee request, which will be paid by the corporate defendants and/or their insurance carriers. Robbins LLP never seeks reimbursement for attorney’s fees or costs directly from our shareholder clients.
Legal Support and Investment Monitoring from Robbins LLP
If your portfolio has lost value as a result of any of the misconduct listed above, please contact our shareholder rights attorneys or call us for a free evaluation of your potential case at (800) 350-6003.