When a publicly traded company makes
false or misleading statements about its
business, the company's securities will
often trade at prices higher than
they're actually worth.  In other words,
the securities will trade at prices
artificially inflated by the false or
misleading information.  Once the truth
that was concealed by the company is
revealed to the public, the stock price
will then drop, causing investors to
suffer damages.  The scenario depicts a
common type of securities fraud.  When
instances of securities fraud are
discovered, they can form the basis of a
securities class action lawsuit.
A securities class action lawsuit is
brought by a large group of investors
known as a class, who join together to
assert claims against a company arising
out of the company's fraudulent behavior.
If you would like more information about
securities class actions, please contact
us.
 
