The rule that allows class actions has been in place since 1966, but has taken different meanings (due to both changes in the law and court interpretations) sin

The rule that allows class actions has been in place since 1966, but has taken different meanings (due to both changes in the law and court interpretations) since that time. In the case of a misleading material statement (which this type of case would fall under) legal remedies go back to the Securities Act of 1933, which prohibit such statements. [0] I agree, it's not the most comforting, and worse, it would be a long, protracted battle that could easily last the better part of a decade. My gut feel is that such an event would be brutal on management and the stock price for years, so any rational manager would do everything they could to avoid that situation. [0] - IANAL, but I do work as a licensed practitioner in the securities industry.