Promises of quick, low risk and high returns should be a warning sign to any investor that they may be the target of a securities fraud scheme. Ponzi schemes and pyramid schemes are just a few of the potential securities frauds that target individual investors, usually on a large scale.
Securities fraud schemes can be difficult to spot. They often include convincing sales pitches, charismatic spokespeople, and slick marketing materials, making many of these fraudulent schemes hard to resist. As a result, billions of dollars are lost to new and sometimes complex securities fraud schemes each year. Large-scale schemes that target more than a single investor are particularly troubling, because the perpetrator can use other investors as “proof” that the scheme is legitimate.
Why Join a Securities Fraud Class Action Lawsuit
Even though the U.S. Securities Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA) and other governmental agencies can bring a suit against a perpetrator of securities fraud, when you have been defrauded, bringing your own civil suit against the perpetrator(s) is often the only way to recoup your losses. When a large group of investors have been victimized by the same scheme, suing as a class can be a powerful tool in collecting as much of your losses as possible.
Securities fraud schemes rarely target a single person. That leads to a large number of defrauded investors with the same or similar circumstances responsible for their losses. As a result, class action lawsuits can be an excellent choice for many securities fraud cases. Class action lawsuits are designed to bring many individuals together to file a single suit against the bad actor(s) based on the same factual allegations and legal theories of liability. As a result, the penalties for the wrongdoer become much steeper and the plaintiffs are more likely to see justice.
In addition to recouping losses from the wrongdoer, a class action suit can also lessen the burden on each individual investor by allowing the group (or “class”) to combine their resources to press their suit. After having investments stolen, the cost of litigation is often prohibitive for a single person. When all the investors who lost funds come together, they can see the lawsuit through to its conclusion, whether through trial or a negotiated settlement.
How to Join a Class Action for Securities Fraud
You may feel embarrassed or ashamed that you have been victimized by a securities fraud scheme, but it’s important to remember that you are probably not alone. If you are but one victim of many, it may be worthwhile to consider joining, or even serving as a class representative for, a class action.
To join a class action lawsuit for securities fraud, your task is as simple as speaking to an attorney. Experienced securities fraud attorneys will be aware of the current class action lawsuits in the field. If there is not yet a class action lawsuit regarding your specific losses, an attorney can help you file one.
If you have been victimized by a securities fraud scheme, it is important to take action quickly. The longer you wait to begin your lawsuit, the less likely it is that you will recover your losses. Join or begin your class action lawsuit today by speaking to one of our qualified attorneys. With years of securities fraud experience, our team can help you work to recover your investment losses as soon as possible.