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Litigating Class Action Securities Claims: Challenges and Opportunities

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The process of litigating class action securities claims presents both complex challenges and opportunities. Imagine yourself in a courtroom, on the brink of a trial for your client’s securities case. As you prepare for the obstacles ahead, you are aware that the outcome of a securities litigation class action hangs in the balance.


Navigating class action securities claims can be a tricky proposition for lawyers. The plaintiff must first breach certification requirements to successfully litigate such a claim. This requires an in-depth understanding of the relevant law and the facts, which can take considerable time and effort.


  • To certify a securities class action claim, a court must determine that the case meets the requirements of Federal Rule of Civil Procedure 23 – namely, that the claims of all the class members are sufficiently similar such that they can be tried together. This certification process requires extensive research into pertinent facts and law and can be challenging to complete successfully. Additionally, numerous types of evidence must be examined to demonstrate that a preponderance of the evidence meets all requirements for certification.

Expert Witnesses

  • Expert witnesses should possess a high level of knowledge in their area and financial markets. They should be able to explain market behavior and why the corporation or investors made certain decisions. Additionally, they must be familiar with applicable laws, regulations, and industry standards to provide an accurate assessment of the situation. The finding and vetting of expert witnesses are arduous tasks. Experienced attorneys often have access to reliable experts in their network, which can expedite this process, but an independent review and assessment must be done before bringing in an expert for testimony.


  • A key challenge is the discovery process if you’re looking to litigate a securities class action claim. Document requests can be lengthy and tedious, and it often requires you to have access to (or hire people with) a great deal of technical expertise to respond adequately. Plus, the potential for long-running litigation means that your costs can quickly add up—and if your defendant has more resources than you, they may try to extend the discovery process as long as possible or even claim that certain documents aren’t relevant.



When litigating securities claims in a class action context, there are several potential opportunities that both claimants and defendants may benefit from. Perhaps the most obvious opportunity lies in efficiency: the ability to litigate multiple claims at once reduces the overall amount of litigation costs by eliminating the need for multiple individual suits.


  • Think of it this way: a class action allows all individual claims to be resolved together in one proceeding as opposed to everyone filing their lawsuits. It keeps all costs associated with finding attorneys and preparing cases low and allows for attorneys’ fees associated with any settlement or verdict to be paid out of the same pool. This essentially results in a larger amount of money for each person involved in the case, so even if a few people opt out and pursue their lawsuit, they won’t necessarily benefit from it financially speaking.

Increased Leverage

  • When litigating securities class action claims, there is a significant advantage to acting as a group. This is because when multiple people from different backgrounds come together and seek legal action, the group’s strength enhances their leverage and makes it difficult for defendants to ignore. Furthermore, with collective bargaining power, the cost of filing class action lawsuits is much lower than filing individually and has the potential to result in larger awards or settlements for all parties involved. This creates more incentive for claimants and can help ensure their case is successful in court.

Potential for Higher Damages

  • You might not know this, but when litigating securities class action claims, there’s a potential for much higher damages than individual lawsuits. This is because the damages are calculated based on the harm suffered by the entire class. Depending on the class size and extent of harm suffered, these cases can award large settlements compared to individual lawsuits. In addition, securities class action suits can include interest or other advantages that would not be accessible in individual suits. As such, they can provide a degree of financial compensation far beyond what an individual could get.

Deterrent Effect

  • Having a good securities class action practice in place can be a major deterrent to wrongdoing by corporations. It serves as a reminder that they need to stay compliant with securities laws, and if they don’t, there are legal consequences. The idea is to help ensure the safety of investors’ funds and protect everyone from fraud and abuse of power. The deterrent effect of a successful securities class action can also help secure monetary remedies for long-term investors who have been harmed by mismanagement or fraud. If a corporation knows that it could face legal action if it fails to meet its obligations to its customers or shareholders, it may take extra precautions to ensure its compliance with the law.

Contact My Ria Lawyer We Are Here for You 

When litigating securities claims in a class action context, there are unique challenges and opportunities. But don’t worry; the team at My Ria Lawyer can help you navigate these complexities.

Author Bio

Leila Shaver is the Founder of My RIA Lawyer, a law firm that provides compliance and legal consulting for financial institutions. With extensive experience as a securities attorney and compliance expert, she has served as Chief Compliance Officer and General Counsel to RIAs, BDs, and TAMPs with billions in assets under management.

Leila understands the challenges RIAs face and is committed to helping RIAs streamline their processes, mitigate risks, and ensure compliance with regulatory requirements. She received her Juris Doctor from Atlanta’s John Marshall Law School and is a West Georgia Young Lawyers’ Association member. Leila has received numerous accolades for her work, including the Carroll County Bar Association’s Outstanding Young Lawyer Award in 2017.

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