If you have been a victim of investment fraud, contact an investment fraud attorney today.
In a civil lawsuit based on violation of the anti-fraud provisions of the Securities Exchange Act of 1934, a/k/a Rule 10b-5 violation, the following must be found by a preponderance of the evidence:
1. That defendant used an “instrumentality of interstate commerce” in connection with the securities transaction involved in the case
2. That defendant made a false representation of a material fact (or omitted a material fact) in connection with the purchase or sale of a security
3. That defendant acted “knowingly” or with “severe recklessness”
4. That plaintiff “justifiably relied” on defendant’s conduct
5. That plaintiff suffered damages as a proximate result of defendant’s wrongful conduct
6. That plaintiff suffered damages.
If you find that plaintiff has proved her claim under 10b5 by a preponderance of the evidence, you must then consider plaintiff’s damages.
You should assess the monetary amount that a preponderance of the evidence justifies as full and reasonable compensation for all of plaintiff’s damages – no more, no less. You must not impose or increase these compensatory damages to punish or penalize defendant.
And you must not base these compensatory damages on speculation or guesswork because plaintiff can recover only her actual damages. Actual damages are calculated as the decrease in plaintiff’s stock value that defendant’s misrepresentation or omission caused. The amount of damages may be expressed in the evidence on a “per-share” basis. Put another way, plaintiff may demonstrate damages by offering evidence of a dollar amount per share.
VERDICT FORM
Do you find from a preponderance of the evidence:
1. That defendant used an “instrumentality of interstate commerce” in connection with the securities transaction involved in this case?
Answer Yes or No _____________
2. That defendant made a false representation of a material fact or omitted a material fact in connection with the purchase or sale of a security?
Answer Yes or No _____________
3. That defendant acted “knowingly” or with “severe recklessness?”
Answer Yes or No _____________
4. That plaintiff “justifiably relied” on defendant’s conduct?
Answer Yes or No _____________
5. That plaintiff suffered damages as a proximate result of defendant’s wrongful conduct?
Answer Yes or No _____________
6. That plaintiff suffered damages?
Answer Yes or No _____________
If your answer is “Yes,” in what amount? $_____________
SO SAY WE ALL.
___________________________
Foreperson’s Signature
DATE: ___________________