Investors In Securities America Class Action Could Have Long Wait
Proposed class action settlements involving Securities America and private-placement sales of Medical Capital Holdings and Provident Royalties could be overturned by investors who decide to opt out of the deal.
As part of the proposed settlement, Judge W. Royal Furgeson Jr. froze three arbitration claims filed by individual investors who’ve sued Securities America over sales of investments in both Medical Capital and Provident Royalties.
As reported March 6 by Investment News, the Judge Furgeson had previously issued a temporary restraining order regarding the arbitrations as part of a potential $21 million by Securities America to investors.
The proposed settlement also throws into question the status of complaints by securities regulators in Massachusetts and Montana. Both states, which sued Securities America in 2010, are seeking restitution for investors plus potential fines.
The Investment News article reads in part:
“If the arbitration were to proceed, it would expend funds for legal defense that would otherwise be made available to class members,” Judge Furgeson wrote.
Attorneys noted that investors’ legal path to “opt out” – declining to join a class and suing individually – is a well-established legal precept.