“For investors who are victims of securities fraud, taking legal action is not just about financial recovery. It also sends a strong signal to the market: you are acting in the interests of your clients and you play a role in corporate governance. In doing so, you protect both performance and reputation,” explains Bruno Rosenbaum, lawyer admitted in Paris and New York, Partner and Head of Non-U.S. Litigation at Kahn Swick & Foti, LLC, in this video interview.

The firm continuously analyzes markets to detect suspicious price movements that may signal fraud. “When a stock price falls sharply, it may indicate that previously hidden information has just been revealed. In such cases, we investigate: was false information disclosed? Since when? We then compare the artificially inflated price (driven by the false information) with the actual value after the drop to estimate the damage,” says Bruno Rosenbaum.

Becoming a “lead plaintiff”: a Procedural and Financial Sdvantage

In the United States, class actions allow a “lead plaintiff” to represent all harmed shareholders without requiring others to participate actively. Investors can remain passive and still benefit from the outcome obtained by the lead plaintiff. However, by remaining passive, they become entirely dependent on the arguments advanced by that lead plaintiff and the strategy chosen by its lawyers. A common misconception is that the lead plaintiff’s interests necessarily align with those of every shareholder. This is not always the case: priorities, legal theories, and the pleaded class period may differ. Becoming a lead plaintiff can therefore be a significant advantage in ensuring a strategy tailored to one’s own interests, particularly when losses are substantial. “Being a lead plaintiff is like being at the head of the steering committee of a strategic project. You validate the direction and, ultimately, benefit from the results of the proceedings,” Bruno notes.

Selecting Relevant Cases

The objective is to select only the most relevant cases, and the firm covers all legal costs. In 2024, Kahn Swick & Foti, LLC secured more than $250 million for its clients in just six cases. “Our approach is rooted in efficiency, selectivity, and results,” says Rosenbaum, who encourages investors to consult several firms to compare analyses: “Relying on a single firm is like relying on a single doctor. For institutional investors, comparing opinions is essential.”