Securities Class Action Lawsuits

In the legal practice of securities class actions, Shamis Gentile stands as a prominent advocate dedicated to safeguarding investors against corporate securities fraud. Our firm ardently champions the rights of investors across the nation who have been impacted by securities fraud and corporate misconduct. We are resolutely committed to securing restitution for those who have incurred investment losses due to material misrepresentations or breaches of fiduciary duties within both public and private companies. Beyond our steadfast representation of investors in securities class actions, Shamis Gentile also spearheads initiatives for corporate governance reform, fostering improved financial markets for global investors.

“When companies and directors violate federal securities laws, Shamis Gentile makes a point to make them PAY for their wrongdoings.”

Securities Class Actions serve as a vital tool for upholding accountability and transparency in financial markets. These legal proceedings allow shareholders and investors to exercise their rights and seek financial recoveries in the aftermath of securities fraud and other conduct that violates federal securities laws.

The Securities Exchange Act of 1934 (Exchange Act) is the bedrock for many securities class actions. The Exchange Act governs how securities are traded on secondary markets like the NYSE and NASDAQ stock exchanges. It empowers investors with rights to maintain the integrity of trading on these exchanges. The law allows investors to sue a company and its representatives for fraud and other violations when they cause shareholder losses by providing false and misleading statements.

The Securities Act of 1933 (Securities Act) governs initial public offerings (IPO) and other offerings of securities. The Securities Act ensures investors are provided with truthful information. It also protects investors by allowing them to file a securities class action when companies provide inaccurate information. Under the Securities Act, investors can claim financial recoveries when companies misrepresent statements in a prospectus or other key offering documents.

The Private Securities Litigation Reform Act of 1995 (PSLRA) is a federal securities law that amended the Exchange Act and Securities Act. It updated the rules for how investors may file a securities class action and participate as a lead plaintiff. The PSLRA allows a lead plaintiff to serve as a class representative and seek financial recovery on behalf of itself and other harmed investors.

Achieving Corporate Governance Reforms and Long-Term Value through Shareholder Litigation

Not only can investors achieve financial recoveries through securities class actions, state and federal securities laws allow shareholders to correct harm to a company and improve corporate governance. Shareholders have the right to act on behalf of the company, particularly when its board of directors will not. One avenue of advocating for a company is through stockholder litigation, or a shareholder derivative lawsuit. The lawsuit is “derivative” because the right derives from a shareholder’s status as an owner of the company. Derivative actions allow an investor to “stand in the shoes” of the company. The common goals of shareholder derivative litigation are to have wrongdoers pay the company back for the harms they caused and implement governance changes that improve the long term value of the company.

The attorneys at Shamis Gentile have deep experience in complex litigation. The law firm additionally utilizes all the tools available to achieve results for its clients. Shamis Gentile is a leader in implementing advanced technology to vigilantly monitor for events that reveal securities law violations. When that occurs, the team of professionals at Shamis Gentile immediately act to inform clients and provide a legal strategy for loss recoveries.