Lead plaintiffs receive the most money in class action lawsuits. However, the court will ensure their payment is restricted to a sensible amount.Ĭontrary to popular belief, class action settlements are not divided among class members evenly.
#CLASS ACTIO LAWSUITS AGAINST STARTEK FOR FREE#
To ensure fairness, the court usually restricts the lawyers’ payment to a reasonable amount.įinally, the rest of the settlement money in a class-action lawsuit is divided among the class members.įor a free legal consultation, call 80 Who Gets the Most Money in a Class Action Lawsuit?Īttorneys will take a percentage from the settlement to cover their legal fees. Since the lawyers typically work on a contingency basis, they would also receive a percentage for their legal fees and related costs. Depending on their participation in the class action lawsuit, the lead plaintiff receives their percentage first. After a Class Action Lawsuit SettlesĪfter the presiding judge reviews the settlement offer in a class-action lawsuit and determines that it is fair and adequate compensation, the settlement amount is divided.
Money is not divided evenly in a class action lawsuit. Judge Miller also awarded attorney fees of 25% of the settlement, together with interest thereon until paid, and expenses in the amount of $327,564.74.Money piles up in uneven stacks. Miller approving the settlement and dismissing all claims with prejudice. On December 31, 2009, the Court entered the Order signed by Judge Walker D. The Settlement Hearing was set for December 17, 2009. Miller preliminarily approved the settlement. The proposed settlement is in the amount of $7,500,000 in cash. The lead plaintiffs filed a Stipulation of Settlement. On September 3, 2009, the lead plaintiffs filed a motion for order to preliminarily approve class action settlement. Defendants answered the complaint on November 18, 2008, and the parties soon after engaged in discovery. In his order the judge stated, "Any delay in disclosing the loss of income from Microsoft does not give rise to liability because the facts were disclosed and no losses resulted from any alleged misrepresentation, false statement, or omission regarding this aspect of StarTek’s business." However, the judge refused to dismiss all other claims. On November 6, 2008, the judge entered an order dismissing in part plaintiffs claims against the Company. District Court for the District of Colorado. On a Second Consolidated Complaint was filed correcting deficiencies in the original complaint.Īccording to a press release dated September 22, 2008, StarTek, Inc., and certain of its current and former officers are seeking the dismissal of the amended complaint in a consolidated securities fraud class-action lawsuit filed against them in the U.S. The judge dismissed the first and second claims, but denied defendants' attempt to dismiss the third and fourth claims. On May 23, 2006, StarTek and the individual defendants moved the court to dismiss the action in its entirety.ĭefendants filed for a motion to dismiss, which was granted in part on March 28, 2008.
The plaintiffs seek compensatory damages on behalf of the alleged class and award of attorneys’ fees and costs of litigation.
The complaint alleges claims under Sections 11 and 15 of the Securities Act of 1933, and under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The consolidated complaint, filed on Maalleges that the defendants made false and misleading public statements about their business and prospects in the prospectus for the secondary offering, as well as in filings with the SEC and in press releases issued during the Class Period, and that the market price of StarTek's common stock was artificially inflated as a result. Two stockholder derivative lawsuits related to these aforementioned claims were also filed against various of our present and former officers and directors on November 16, 2005, and December 22, 2005, alleging breach of fiduciary duty, abuse of control, gross mismanagement, waste of corporate assets, and unjust enrichment. On this news, StarTek's stock price fell over 18% from a close of $15.20 on to $12.40 on May 6, 2005. The Company also announced that its revenues declined 14.2% from the same period in 2004. On May 6, 2005, StarTek announced that its first quarter 2005 earnings per share from continuing operations decreased to $0.18 compared to $0.49 for the first quarter of 2004. Specifically, defendants issued false statements concerning strong existing demand for StarTek's outsourced services from four of the Company's customers that accounted for 90% of StarTek's revenue, the Company's healthy sales pipeline and the completion of a management transition and restructuring plan, which artificially inflated StarTek's stock price during the Class Period. The original complaint alleges that the Company and certain of its officers and directors, violated federal securities laws.
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