Responsibilities of a Lead PlaintiffThe Lead Plaintiff in a class action has several important responsibilities including: hiring the class action lawyer; filing the class action lawsuit; consulting on the case; participating in the case; and, agreeing to any settlement.
(1). Hiring the Class Action Lawyer: While the Lead Plaintiff enters into a retainer agreement with the attorney(s) in a class action, the Lead Plaintiff is not responsible for attorney fees and therefore does assume a monetary risk. Instead, in class action lawsuits, the attorneys usually take the cases on a contingency fee basis which means the attorneys pay all costs during the case and recover those expenses and their fees only if they are successful. With Court approval, the Lead Plaintiff may recovere expenses such as travel, copying, and postage.
(2). Filing the Class Action Lawsuit: The Lead Plaintiff is the one who initiate the case on behalf of all the people who suffered the same and similar damages at the hands of the same guilty party.
(3). Consulting on the Case: The Lead Plaintiff participates in case strategy and decisions, has some form of control over how the case is handled. The Lead Plaintiff should consult with their attorneys on any major decision and provide their input throughout the case. Their attorneys should keep them advised of the status of the case at all times and provide them copies of any major pleadings or motions (such as a motion for class certification) to review and provide input before they are filed.
(4). Participating in the Case: The Lead Plaintiff participates in the lawsuit, which may mean participating in discover, the process of gathering information that may involve answering interrogatories, producing documents and other evidence, and having their deposition taken. The Lead Plaintiff also attends hearings, trials, and other court proceedings.
(5). Agreeing to Any Settlement: Perhaps the most important role of the Lead Plaintiff is to consult with the class action lawyers about any possible settlements. The Lead Plaintiff should consult closely with his or her attorneys regarding any settlement offers and the attorneys may not agree to any settlement without client authorization. The lead plaintiff is the only party with the authority to accept or reject a settlement offer. Any settlement agreed to by the Lead Plaintiff is automatically binding on all other class members.
What Compensation is a Lead Plaintiff Entitled to Receive?
In addition to recovering their actual losses, a Lead Plaintiff may, at the discretion of the court, be awarded additional funds above and beyond the compensation granted to other members of the class. This award is known as an incentive award. An incentive award offers individuals who suffered injuries or losses an incentive to serve as the Lead Plaintiff in a class action. With all the responsibilities class representatives handle, it is only fair they receive some type of extra compensation for their work. Indeed, incentive awards are intended to compensate class representatives for “work done on behalf of the class, to make up for financial or reputational risk undertaken in bringing the action, and, sometimes, to recognize their willingness to act as a private attorney general.” Incentive Awards are generally sought after a settlement or verdict has been achieved.In determining whether to make an incentive award to the Lead Plaintiff, courts have considered the following criteria: (1) the risk to the class representative in commencing suit, both financial and otherwise; (2) the notoriety and personal difficulties encountered by the class representative; (3) the amount of time and effort spent by the class representative; (4) the duration of the litigation and; (5) the personal benefit (or lack thereof) enjoyed by the class representative as a result of the litigation.
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Timothy L. Miles has committed his entire career to representing shareholders in complex litigation. Mr. Miles has been recognized for numerous awards for his legal abilities in his struggles to fight for shareholder rights not only among his peers but also those in the judiciary who see firsthand not only his tenacity for protecting shareholder rights, but how he always adheres to the utmost ethical standards when litigating against his adversaries and in a Court of Law. These efforts have resulted in Mr. Miles being recognized not only as an industry leader in his fight for shareholders but also in the ethical manner in which he conducts himself as a lawyer and member of the bar. These recognitions include: The AV® Preeminent™ Rating by Martindale-Hubble®, which is bestowed on fewer than 5 percent of attorneys, in Securities Law, Litigation and Class Actions (2014-2018); The AV® Preeminent™ Attorney – Judicial Edition, the Highest Possible Rating in Both Legal Ability & Ethical Standard Reflecting the confidential opinions on members of the Bar and Judiciary (2018-2017); The Top-Rated Lawyer in Litigation™ for Ethical Standards and Legal Ability by Martindale-Hubble® (Feb. 2015); Superb Rated Attorney, (10.0 out of 10), the Highest Rating Possible by Avvo; Avvo Top Rated Lawyer 2017 & 2018 (Avvo); America’s Most Honored Professionals – Top 1% (2016-2018) (American Registry). Mr. Miles is also a member of Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association, which is by invitation only and according to the National Trial Lawyers Association, is “extended to those attorneys who exemplify superior qualifications, trial results, and leadership in their respective state based upon objective and uniformly applied criteria.” The press release by The National Trial Lawyers Association announcing Mr. Miles selection for inclusion into its Top 100 Trial Lawyers stated: “With the selection of Timothy L. Miles by The National Trial Lawyers: Top 100, Miles has shown that he exemplifies superior qualifications, leadership skills, and trial results as a trial lawyer. The selection process for this elite honor is based on a multi-phase process which includes peer nominations combined with third party research.” Mr. Miles focuses his practice on securities fraud class actions, shareholder derivative actions, and corporate mergers and acquisitions class actions.