Legal Question in Securities Law in California
Class Action Period
Bought stock 05/96.
Stock tanked weeks later. Class action law suit followed
against the president and company , claiming fraud and ficticious profit and business picture.
Finally a settlement, but the class period is from June 95 to July 96. Settlement papers require that I suffered a loss during that class period, considering a loss only if
I sold my stock during that period.
I did not sell the stock till 2 years later, for a huge loss. It has taken 7 years for the stock price to recover
to the level in which I purchased. I do not understand
how my loss after the class period is not a loss. my loss
2 years after the class period is a direct result of the fraud, the stock did not recover until 7 years later, so there was no way i could have not suffered a loss until now. Why / how are class periods determined? If my equity
falls 75%, but I still hold the stock, did I not suffer a loss, or does a loss occur only when I in fact sell the shares? any recourse?
1 Answer from Attorneys
Re: Class Action Period
If the stock price has returned to your purchase price you are very lucky. If you are outside the class period you are not included in the class. 7 years creates a statute of limitation problem which is difficult to overcome. I hope this answers your question satisfactorily.
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