What Is a Securities Fraud Class Action?

Robbins Geller has aggressively pursued securities fraud class action lawsuits for years, helping thousands of investors recover substantial monies lost as a result of corporate fraud, market manipulation and other unlawful activities. Throughout the course of its longstanding commitment to protecting and upholding the rights of investors, though, the firm’s attorneys have come to understand that not all of their prospective clients — to say nothing of the general public — think about securities fraud issues on a daily basis.

With that in mind, here’s a look at the basics of Robbins Geller’s securities fraud class action lawsuits.

How Securities Fraud Class Action Lawsuits Work

Securities fraud class action lawsuits begin with a thorough investigation of potential impropriety or unlawful activity on behalf of a publicly traded law firm. During the course of the investigation, Robbins Geller relies on the expertise of talented investigators, financial experts and attorneys with years of experience in such matters. In particular, the Robbins Geller team looks for suspicious stock-price activity (often utilizing its proprietary portfolio monitoring service) and determines whether said activity is the result of willful deception by the company.

If this is determined to be the case, the Robbins Geller team defines the class period — the date range during which investors who purchased the company’s stock likely lost a portion of their investment due to the unlawful activity. Investors who meet the class requirements can then join the class. If a judge determines that the class’s collective financial loss is due to the company’s unlawful activity, he or she certifies the class and allows the case to proceed.

Securities fraud class action lawsuits help investors in several different ways:

  • Recovering funds for investors who lost money as a result of unlawful corporate activity
  • Promoting transparency and honest behavior among publicly traded firms
  • Aiding financial regulatory authorities that might otherwise lack the resources or manpower to pursue individual investors’ claims against publicly traded firms
  • Empowering individual and institutional investors

Current and Future Securities Fraud Class Action Suits by Robbins Geller

Robbins Geller continues to fight for the rights of shareholders affected by unlawful corporate activity. Recently, the firm commenced a class action lawsuit on behalf of shareholders in IsoRay Inc. (NYSE: ISR), a company that develops isotope-based products for use in cancer treatments and other medical applications. The suit’s class period covers May 20 and May 21, 2015, and centers around “false and misleading statements” made in a press release issued prior to the market’s opening on May 20. In particular, the release overstated the favorability of a particular study’s results, causing IsoRay’s stock price to rise considerably, then fall after a respected third-party publication issued a clarification that contradicted the release’s conclusions and accused IsoRay of “selective editing.”

Securities fraud class action suits like Robbins Geller’s IsoRay case are clearly in the best interests of the investors who comprise the class — and serve as a powerful curb on the potentially unlawful activities of publicly traded firms. To learn more about Robbins Geller’s securities fraud law cases or the IsoRay case in particular, visit Robbins Geller’s website.