Legal Question in Securities Law in California

When an ETF or a mutual fund , that an employee invested money in inside a 401(k) plan , is sued in a class action lawsuit :

Will the class action Notice be mailed to the employee or to the plan administrator(employer) ,or to both ??


Asked on 8/04/15, 5:56 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

The method of notifying members of the potential plaintiff class may be up to the judge. See California Rules of Court 3.766(a)....... "If the class is certified, the court may require either party to notify the class of the action in the manner specified by the court." One practical upshot of this is that if the defendant ETF or mutual fund has all the records of who its investors are, the court would presumably direct the defendant to notify the individual investors, since it is the one who knows who they are. I must add that I am NOT a class-action expert, and I found this court rule just now by reading the index in a practice manual......so there may be nuances that I'm not aware of.

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Answered on 8/04/15, 6:45 pm


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