Many people believe that lawyers run the entirety of class actions in Mississippi and nationwide. In reality, every case needs a lead plaintiff to step up and champion justice.
Serving in this role is both a privilege and a responsibility that requires active involvement and a willingness to stand up against powerful entities. If you are thinking about pursuing this path, understanding what the role entails can help you make an informed decision.
The legal standards
In securities cases, the Private Securities Litigation Reform Act (PSLRA) typically provides class members with 60 days to seek appointment as lead plaintiff. The court generally selects the person or group with the largest financial stake.
In consumer and antitrust class actions, Rule 23 requires a class representative to be adequate and typical of the class. Collectively, these provisions are meant to ensure that the parties most affected and motivated lead the litigation, rather than merely those who file first.
What does a lead plaintiff actually do?
A lead plaintiff does much more than simply file a lawsuit for their own benefit. In this role, you act on behalf of other people who have similar claims. Your responsibilities involve helping guide the case in a way that protects the whole class, including:
- Counsel selection: Reviewing and hiring the law firm that will handle the case
- Strategic oversight: Reading important filings and monitoring what is happening in the lawsuit
- Discovery process: Gathering evidence and sitting for a deposition in some cases
If the case reaches a settlement stage, you also help decide whether the proposed settlement is fair and appropriate for everyone involved, not just for yourself.
The incentive award
In addition to their share of the settlement, lead plaintiffs may seek an incentive or service award to recognize the extra time, effort and risk involved in fulfilling that role. Courts often approve these payments because the tasks involve more than signing paperwork.
Still, the value of serving as a lead plaintiff is not only financial. Many people take on the role because they want to help in holding a powerful organization accountable for wrongdoing.
Stepping up for the greater good
If you have been harmed by a corporation or other entity, you may have the opportunity to lead the charge for everyone else. Being the lead plaintiff is a difficult commitment, but it is one supported by legal experts and compensated by the court. The Barrett Law Group, P.A. team can help you see if your case is right for a class action.