Glossary of terms used on this site
There are 3 entries in this glossary.All
| Term | Definition |
|---|---|
| lead plaintiff |
A "lead plaintiff" in a federal securities class action is typically appointed by the court within 90
days of the publication of a notice of the pendency of the case. In these types of actions, the court selects the class member (or members) most capable of representing the interests of the other "absent" class members investors. There is a legal presumption that the class period investor with the largest financial loss, who is otherwise typical of the "absent" class members and is adequate to represent those class members, is the "most adequate" plaintiff. Courts have appointed individuals, institutional investors or sometimes combinations of both as lead plaintiff as the circumstances of each case may dictate. The lead plaintiff selects counsel to represent the lead plaintiff and the class, subject to court approval.
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