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Appointment of Lead Plaintiff
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Within 60 days of the notice of the first
securities class action against a company,
any class member may seek to be appointed
by the court as the lead plaintiff
and may seek court approval to have his or her
attorneys appointed as lead counsel.
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Filing of an amended complaint
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Approximately 45-90 days following the appointment
of lead plaintiff and the approval of lead counsel,
an amended complaint is filed.
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Defendants' motion to dismiss complaint
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A motion to dismiss will generally be filed by the
defendants within 45 days following the filing of an
amended complaint. Additional submissions related
thereto will be filed by the plaintiffs and the defendants.
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Submissions related to the motion to dismiss
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During the following months, plaintiffs will respond to
defendants motion to dismiss and other submissions to
the court are likely to be made. Ordinarily, the court
will then permit oral arguments.
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Court Decision concerning the motion to dismiss
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The court will rule on the motion to dismiss as soon as practicable.
However, it may take a few months or longer than a year.
Also, if the court permits, an opportunity to file a second
amended complaint, defendants will have another opportunity
to file another motion to dismiss.
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Class certification
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Although a class action complaint is filed, there is
no class action, until the court
determines that the case is appropriate for class
treatment and certifies the class.
Defendants will ordinarily argue that the matter
should not be certified as a class action.
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Discovery
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With the court's permission, plaintiffs may
proceed to prove the allegations set forth in
the complaint. The court will permit plaintiffs’
counsel to obtain documents and deposition testimony
from defendants and third parties. This process can
take years, but generally is conducted pursuant to a
time limit set forth by the court.
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Expert Discovery
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Both plaintiffs and defendants will retain experts (such as damage
experts) who will ordinarily testify regarding issues impacting
the litigation.
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Settlement
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Settlement discussions will generally take place prior to,
or during, preparation for trial.
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Settlement notice and hearing
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All identified class members will receive a notice of the
settlement and of the hearing, and a summary form of this
notice will also be published in a widely read newspaper.
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Trial
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A securities class action that does not settle will be tried
from two to four years after it has commenced.
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Appeal following trial or settlement
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Following a trial verdict or settlement notice, any party
(including an objecting Class member) may appeal the
resolution to the appellate court.
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Proof of claim forms
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Following a settlement or judgment, the class member will receive
a Proof of Claim form.
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