I have a stock that I have lost 70% and it looks like it is headed for a "Class Action Law Suit". If I sell the rest of the stock will I still be able to be part of the "CALS"?[/I][/I]

Typically class action suits against a company by shareholders are over claims that management failed to report material facts about the company's finances, thereby artificially inflating the stock. The affected class of investors are therefore those who purchased the stock during a time frame prior to the public being aware of the issues. So, you can be a member of the class action suit IF you bought stock during that period. It doesn't matter if you sell at this time - it won't affect your status as a party to the suit.

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Originally Posted by ebaines

Typically class action suits aginst a company by shareholders are over claims that management failed to report material facts about the company's finances, thereby artificially inflating the stock. The affected class of investors are therefore those who purchased the stock during a time frame prior to the public being aware of the issues. So, you can be a member of the class action suit IF you bought stock during that period. It doesn't matter if you sell at this time - it won't affect your status as a party to the suit.

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Thanks for the response. I am in the time frame of the class action.