Has anyone recovered money from stock ligitation lawsuits?

I daytrade but I daytrade several companies that have gone bankrupt. Would I be able to receive compensation from the litigation?

 

Do those companies have any pending class action lawsuits?

 

Yes they do. Just wondering does anyone ever receive money from these or do the lawyers get all of the cut mostly?

 

I have. It takes a long time. Just fill them out, keep a record and wait.

 

I did once. But it was a class action lawsuit. Took forever, maybe 3 years. I was short and the stock went broke and quit trading and there was no way to cover. I forget who we sued. Long time ago. probably different rules today. Everything was frozen and it was just an accounting matter but you know, laws. The thing is it went back and forth for a long time before the lawyers even got involved.

 

How much money should I expect back? I trade in $50k quantities usually

 

If you are anticipating this to help you in recovering your recent draw down, I probably wouldn't approach it with high hopes. These things are long and drawn out and your odds aren't that great I'd say.

Were you holding the position when some event/news came out? If they went bankrupt, your recovery would potentially be your share of whatever is leftover after paying the creditors back or if they give a small percentage to make equity holders drop their suit. But if you are just in and out in a day, I'm guessing you might not be entitled to a claim unless it was during a specific event/date. But idk, I could be wrong. Best of luck with it.

 

I have received money numerous times from those lawsuits. On average if I do get paid anything, they amount to like 1/50th of the loss I sustained.

I do remember once I recovered $30,000 on a lawsuit when my capital loss on the stock was $60,000. Yes...almost 50% recovered! I was in disbelief when I got the check in the mail. My only guess why the sum was so large in relation my actual loss is because not many shareholders submitted their claim to the lawyers.

 

At first i thought you meant "Recover money from a thieving brokerage" sadly im 0/1 on that, but cant help you with individual companies, sorry.

 

It takes years and years and they make the process of filling out the paperwork very intricate and confusing and besides that you are lucky to even get 17 cents on the dollar, the only ones making out big once again are the lawyers...