Frequently Asked Questions:

1. What Is A Class Representative?


2. Why Should I Fill Out A Certification? / What Are The Advantages To Being A Class Representative?


3. How Do I Complete The Certification Form?


4. What Else Do I Need To Do To Get Involved?
   
5. Do I Need To Keep My Shares?


6. Should I Sign Up With More Than One Law Firm?


7. Who Pays Attorneys' Fees And Expenses?


8. How Much Will I Receive If The Action Is Successful?


9. How Long Will The Case Take?

2.  Why Should I Fill Out A Certification? / What Are The Advantages              To Being A Class Representative?

To participate as a proposed class representative ("Lead Plaintiff") in a lawsuit, you ordinarily must complete a certification form. Returning the completed certification to us allows you to participate directly in the lawsuit. You may regularly consult with your attorneys and actively participate in the litigation.  It allows you to receive updates and important information about the lawsuit, such as whether a class has been certified by the court or has been resolved.  It will also help ensure that you receive a claim form in the event the case is successful, so that you receive any money to which you may be entitled.

Your participation also helps to convey the importance of the lawsuit.  It shows the court that there are many victims of the alleged fraud, and not just one or two individuals.

3.  How Do I Complete The Certification Form?

On the certification form, you must list your purchases and sales information about the security at issue.  Specifically, the date of the transactions and the amount of the purchases or sales should be indicated in the appropriate places.  You can ordinarily obtain this information from your account statements or from your broker.

By signing the certification form, you verify that you have reviewed the complaint and authorize us to file that complaint or a similar complaint on your behalf.  The complaint can ordinarily be found and reviewed on our website.  By signing the certification form, you also verify that you did not purchase the security at issue in order to participate in the action, you are willing to serve as a class representative, including providing testimony at deposition and trial, if necessary, and that you have not in the last three years sought to serve nor served as a class representative in another action filed under the federal securities laws.  If you have been a class representative, you must list the cases in which you have participated.  By signing the certification, you also confirm that you will not accept any payment for serving as a class representative other than your proportionate (fair) share of any recovery.

If you have any questions about filling out the form, please do not hesitate to call or e-mail us.

4.  What Else Do I Need To Do To Get Involved?

After you have signed the certification form, you should fax it to us at (646) 227-1701, and send the original to the Egleston Law Firm, 360 Furman Street, Suite 443, Brooklyn, NY 11201.

5.  Do I Need To Keep My Shares?

Selling your shares normally does not prevent you from becoming a class representative or remaining a member of the class in most securities class actions. You should feel free to keep or sell the stock.

6.  Should I Sign Up With More Than One Law Firm?

Occasionally you will see notices from other law firms that have brought similar lawsuits on behalf of the same class of persons.  It is not unusual for a number of law firms across the country to be involved in a lawsuit.  Ordinarily, you should sign-up with only one law firm, as submitting certification forms to multiple firms is unnecessary and may lead to confusion.

Typically, 60-90 days after first publication of the first lawsuit, the various related class actions will be combined into a single action before a single judge.  Applications will then be made to the judge for appointment of "Lead Plaintiffs" and "Lead Counsel".  Sometimes this will be decided relatively quickly; other times it may take several months.

In addition, there may be press releases issued by lawyers or law firms with no involvement in the cases we are prosecuting.  Investors should be advised that some lawyers are seeking clients to "refer" or "forward" to other law firms in exchange for referral fees.  The resulting introduction of additional law firms into these pending actions may have the effect of reducing the benefits ultimately obtained for investors.

7.  Who Pays Attorneys' Fees And Expenses?

In class actions, the Egleston Law Firm does not generally charge its clients' attorneys' fees or expenses.  Instead, the firm typically handles such cases on a "contingent fee" basis.  This means that our fees and reimbursement of our expenses will depend on producing a successful outcome for the class.  If a fund of money is created for the benefit of a class, we will seek approval from the court of a fee and expense award to be paid out of the recovery or directly by the defendants.

Attorneys' fees and expenses are typically awarded by a court when the case is concluded.  The amount of the attorneys' fees requested, and the amount awarded, ordinarily depends on a variety of factors, such as the size of the recovery, the amount of time expended by the attorneys involved in the lawsuit, and the complexity of the litigation.  We ordinarily request that the court award 33 1/3% of the fund to the attorneys as a fee, and courts typically award between 20% and 33% of the recovery obtained.

8.  How Much Will I Receive If The Action Is Successful?

If the action is successful, the amount of your recovery will depend on a variety of factors, such as the size of the recovery, the ability of defendants to pay, whether the defendants are insured, and the number of persons who submit claims against the fund.  Unfortunately, many of these factors are unknown until much later in the lawsuit.  As a result, we are unable to estimate the recovery, if any, you can expect from the lawsuit.  Historically, however, investors have recovered anywhere from 10% to 100% of their damages.  The settlement proceeds are typically paid by the defendants and/or an insurance company if there is insurance coverage.

You should also be aware that in federal securities actions, you may be reimbursed such reasonable costs and expenses, including lost wages, directly relating to the representation of the class as ordered or approved by the court.  In addition, in consumer class actions, we have occasionally requested courts to award what are known as "incentive payments" to compensate persons for the time and expense incurred in being a class representative.  However, there is no assurance that we will, or can, request such awards (the law varies across the country), or that, if requested, the court will approve the award.

9.  How Long Will The Case Take?

Class actions are complicated and lengthy, normally taking between 2 and 3 years from initiation of the case to conclusion, and sometimes taking much longer.  If the case is successful, you will be notified and receive a "claim form," which you will send to a claims administrator.  After the claims administrator processes all the claim forms received, the court will be asked to approve distribution of the proceeds, and you will receive your pro rata share of the recovery.

This website contains Attorney Advertising.
Prior results do not guarantee a similar outcome.