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Direct & Opt-Out Actions

A direct action is a lawsuit that is filed on behalf of one investor or a small group of investors as opposed to a "class" of investors against a publicly traded company, its officers or directors, and/or its financial advisors including underwriters and possibly accountants. In a direct action, your fund serves as the named plaintiff and pursues its claim in its own lawsuit. Such actions may be filed by U.S. investors in state or Federal court and by non-U.S. investors in Federal court. A direct action is generally filed by an investor that does not wish to participate in a class action or the settlement resulting from a class action, but nevertheless has such a substantial loss that it requires independent remedies. In a direct action, recovery can be greater and you are able to assert a broader array of claims and name additional defendants. The timing of filing such an action, as well as the pros and cons of engaging in a direct action vary from case to case, and Kessler Topaz is prepared to discuss all of your options with you.