Class Action suit against DDD?

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
User avatar
Lemonaid56
Posts: 142
Joined: Thu Mar 03, 2016 2:15 pm
Location: Maine

Class Action suit against DDD?

Post by Lemonaid56 » Sat Apr 07, 2018 11:27 am

Not sure where I would post this topic so I shall try here.
So, just received in the mail paperwork regarding a Class Action suit again DDD Corp. I know owning individual stocks is not the Bogle way but I bought 529 shares before I saw the light. I bought these under the "buy and hold" theory of MotleyFool. Despite having lost (on paper) roughly $13K I have held onto these stocks the last four years and had planned on holding them.
I'm not sure what this Class Action suit is all about. The way I understand it they inflated the price of their stock against Security Exchange regulations and now have decided to settle rather than to continue fighting it.
So I am wondering if any of you people also bought this stock and what are your thoughts about the suit and what might you recommend?

simple man
Posts: 118
Joined: Sun Nov 22, 2009 10:44 am

Re: Class Action suit against DDD?

Post by simple man » Sat Apr 07, 2018 11:31 am

Unless you are serious about hiring your own lawyer and going after them for whatever (which would not make sense), fill out the class action paperwork if you qualify. Good chance you would get a few dollars.

User avatar
Lemonaid56
Posts: 142
Joined: Thu Mar 03, 2016 2:15 pm
Location: Maine

Re: Class Action suit against DDD?

Post by Lemonaid56 » Sat Apr 07, 2018 1:01 pm

Thanks for your reply.
I just read some more of the paperwork over lunch and looks like I'll only get a few hundred dollars if I understand it correctly. If I don't send in the paperwork I'll get nothing.
A hundred dollars is enough to get my attention!

kappy
Posts: 139
Joined: Tue Jun 21, 2016 7:13 pm

Re: Class Action suit against DDD?

Post by kappy » Sat Apr 07, 2018 1:09 pm

Use them to offset gains when you sell something else. That's what I did with a small amount that I held from a few years ago.

User avatar
David Jay
Posts: 5806
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Class Action suit against DDD?

Post by David Jay » Sat Apr 07, 2018 1:24 pm

These class action lawsuits happen almost every time there is a big drop in stock price. The usual result is 5 or 10 million dollars for the law firm and pennies a share for the shareholders.

I got an 83 cent credit in my Kindle account from that class action lawsuit. A cynic could see these class-action lawsuits as a full-employment plan for lawyers.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

Chicago60
Posts: 388
Joined: Tue Jan 29, 2013 3:40 pm

Re: Class Action suit against DDD?

Post by Chicago60 » Fri Apr 13, 2018 1:46 pm

You won't know how much you receive unless you complete the claim form in a timely manner and send it in, but the class notice provides the settlement is for $50 million, if approved by the federal judge. Your share of the recovery likely depends on the number of people who submit valid and completed timely claim forms. I cannot imagine it will take you more than 15 minutes to complete, even if you have to look up your old tax returns and brokerage statements to show proof of purchase, sale, and dates. I think you'd be crazy not to fill it out. I am not a class member, but if I were, I'd hope you and others had David Jay's attitude and skip it--why enrich the lawyers--so my share of the recovery would increase.

User avatar
Lemonaid56
Posts: 142
Joined: Thu Mar 03, 2016 2:15 pm
Location: Maine

Re: Class Action suit against DDD?

Post by Lemonaid56 » Fri Apr 13, 2018 6:23 pm

Chicago60 wrote:
Fri Apr 13, 2018 1:46 pm
You won't know how much you receive unless you complete the claim form in a timely manner and send it in, but the class notice provides the settlement is for $50 million, if approved by the federal judge. Your share of the recovery likely depends on the number of people who submit valid and completed timely claim forms. I cannot imagine it will take you more than 15 minutes to complete, even if you have to look up your old tax returns and brokerage statements to show proof of purchase, sale, and dates. I think you'd be crazy not to fill it out. I am not a class member, but if I were, I'd hope you and others had David Jay's attitude and skip it--why enrich the lawyers--so my share of the recovery would increase.
Oh I am definitely filling this one out. Free money? Yes please! I had the same thoughts as you hoping few others fill out the paperwork. Not being greedy but why give the lawyers all the free stuff?

Chicago60
Posts: 388
Joined: Tue Jan 29, 2013 3:40 pm

Re: Class Action suit against DDD?

Post by Chicago60 » Sat Apr 14, 2018 8:34 am

Lemonaid56 wrote:
Fri Apr 13, 2018 6:23 pm
Chicago60 wrote:
Fri Apr 13, 2018 1:46 pm
You won't know how much you receive unless you complete the claim form in a timely manner and send it in, but the class notice provides the settlement is for $50 million, if approved by the federal judge. Your share of the recovery likely depends on the number of people who submit valid and completed timely claim forms. I cannot imagine it will take you more than 15 minutes to complete, even if you have to look up your old tax returns and brokerage statements to show proof of purchase, sale, and dates. I think you'd be crazy not to fill it out. I am not a class member, but if I were, I'd hope you and others had David Jay's attitude and skip it--why enrich the lawyers--so my share of the recovery would increase.
Oh I am definitely filling this one out. Free money? Yes please! I had the same thoughts as you hoping few others fill out the paperwork. Not being greedy but why give the lawyers all the free stuff?
Respectfully, I assume your response was tongue-in-cheek, but nothing "free" at all about what you and other class members are entitled to as a result of defendant's alleged misconduct, or the thousands of hours of time and thousands of dollars of expense the class action lawyers incurred.

User avatar
Lemonaid56
Posts: 142
Joined: Thu Mar 03, 2016 2:15 pm
Location: Maine

Re: Class Action suit against DDD?

Post by Lemonaid56 » Mon Apr 16, 2018 4:12 pm

Yes "Free" is a bit over enthusiastic. I've lost enough on paper with this stock that it would take a significant amount of dough to "make" money. I sent in the paperwork and will continue to hold on to this dog.
I bought it as a buy and hold stock so I am committed to ride it out!

User avatar
David Jay
Posts: 5806
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Class Action suit against DDD?

Post by David Jay » Mon Apr 16, 2018 5:00 pm

Chicago60 wrote:
Fri Apr 13, 2018 1:46 pm
I am not a class member, but if I were, I'd hope you and others had David Jay's attitude and skip it--why enrich the lawyers--so my share of the recovery would increase.
I didn't skip it. I got my 83 cents.

But I would like to see a higher bar. Several micro-cap firms that I have owned had to pay out millions to lawyers for, essentially, a falling stock price. I have seen several of the letters from law firms saying, essentially: "your stock price fell, will you be our plaintiff so we can sue" because there was no natural plaintiffs.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

User avatar
VictoriaF
Posts: 18634
Joined: Tue Feb 27, 2007 7:27 am
Location: Black Swan Lake

Re: Class Action suit against DDD?

Post by VictoriaF » Mon Apr 16, 2018 5:20 pm

I thought it was a suit against a bra size.

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

aristotelian
Posts: 4919
Joined: Wed Jan 11, 2017 8:05 pm

Re: Class Action suit against DDD?

Post by aristotelian » Mon Apr 16, 2018 5:33 pm

I got something like this when DELL got busted for cooking their books. I filled it out but never heard back from the lawyers.

Chicago60
Posts: 388
Joined: Tue Jan 29, 2013 3:40 pm

Re: Class Action suit against DDD?

Post by Chicago60 » Mon Apr 16, 2018 5:36 pm

aristotelian wrote:
Mon Apr 16, 2018 5:33 pm
I got something like this when DELL got busted for cooking their books. I filled it out but never heard back from the lawyers.
You can check the status of the case online. I assume the Notice included the website. It may be that the settlement was not finally approved by the federal court, or you did not properly complete the claim form, or you were not eligible for some reason, or you were not actually a member of the certified class.

pkcrafter
Posts: 13137
Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
Contact:

Re: Class Action suit against DDD?

Post by pkcrafter » Mon Apr 16, 2018 7:15 pm

An example of specific stock risk.

Victoria... :wink:


Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

User avatar
David Jay
Posts: 5806
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Class Action suit against DDD?

Post by David Jay » Mon Apr 30, 2018 11:38 am

I see the Supreme Court granted cert today in Frank vs Gaos.

The issue is a settlement in "Gaos vs Google" where the plaintiff class received ZERO. The lawyers and lawyer's cy pres organizations received $8.5 million.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

dhn121
Posts: 4
Joined: Sun Mar 18, 2012 11:32 pm

Re: Class Action suit against DDD?

Post by dhn121 » Tue Jul 03, 2018 3:36 pm

I didn't get a notice...why?! Is there a link to you can provide me? Or is it too late?

michaeljc70
Posts: 3926
Joined: Thu Oct 15, 2015 3:53 pm

Re: Class Action suit against DDD?

Post by michaeljc70 » Tue Jul 03, 2018 3:54 pm

David Jay wrote:
Sat Apr 07, 2018 1:24 pm
These class action lawsuits happen almost every time there is a big drop in stock price. The usual result is 5 or 10 million dollars for the law firm and pennies a share for the shareholders.

I got an 83 cent credit in my Kindle account from that class action lawsuit. A cynic could see these class-action lawsuits as a full-employment plan for lawyers.
This. I try to avoid them as you are just encouraging them. I did get $700 after losing like $12k on WorldCom. Other times it was barely worth cashing the check. Sometimes it isn't worth the effort to produce all the documentation.

User avatar
oldcomputerguy
Posts: 3564
Joined: Sun Nov 22, 2015 6:50 am
Location: In the middle of five acres of woods

Re: Class Action suit against DDD?

Post by oldcomputerguy » Tue Jul 03, 2018 4:16 pm

For those suffering from insomnia or severe boredom, the text of the Complaint is here (PDF, 20 pages). It alleges that the Defendants violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (PDF, 366 pages, section 10b starts on page 96, section 20a starts on page 295). The Settlement Notice is here.
It’s taken me a lot of years, but I’ve come around to this: If you’re dumb, surround yourself with smart people. And if you’re smart, surround yourself with smart people who disagree with you.

Post Reply