Under the Private Securities Litigation Reform Act of 1995, courts will appoint a person, entity, group of persons or entities from the class to serve as the lead plaintiff. The lead plaintiff usually has the largest financial interest in the relief sought by the class and is the class member most capable of adequately representing the interests of the class. Courts determine the “largest financial interest” in a variety of ways, such as by calculating the dollar amount of the loss due to the securities law violations alleged. Also, depending on the circumstances, several entities and/or individuals may be appointed to serve as a “co-lead” plaintiffs.
How do I become a lead plaintiff in a securities class action?