![]() ANZ Securities, Inc., the Supreme Court held that the pendency of a class action does not toll the Securities Act's statute of repose. The statute of repose for Securities Act claims is three years, meaning that investors' claims expire if not brought within three years of defendants' last culpable act or omission.įor Exchange Act claims, the statute of repose is five years. Investors considering whether to opt out must first determine whether they have timely claims to assert through a direct action. Issues to consider include the following: Meanwhile, an opt-out plaintiff's lawsuit - if not timely filed and correctly prosecuted - may result in no recovery at all. They also may be subject to discovery obligations beyond those of an absent class member. Upon opting out, investors may forever forfeit their rights to participate in the class action, including the ability to share in any settlement or judgment. ![]() There are many factors to consider - practical, financial, and legal. Investors evaluating whether to opt out should weigh both the pros and cons of doing so. In these rare instances, investors may be well advised to consider opting out of the pending securities class action to pursue their claims directly. For example, an investor may have out-sized damages, claims not covered by the class case, or concerns about the prosecution of the class action. ![]() However, unique situations may warrant consideration of whether to opt out. In most circumstances, there is neither a benefit nor a need to opt out. In some instances, investors may elect to "opt-out" of a pending securities class action to pursue their claims directly.ĭeciding whether and when to opt out of a securities class action requires careful thought and analysis. JSecurities class actions serve a vital role in policing corporate wrongdoing and enabling defrauded investors to recover their losses. ![]()
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