A class action is a case brought against a company and/or individuals whose actions have damaged many people in a similar way. Specifically in a securities class action, a company's misrepresentations that cause the stock price to be artificially inflated (thereby causing serious losses when the truth is disclosed to the public) are actionable for violations of the federal securities laws. If the case results in a successful recovery, either through settlement or trial, all eligible class members receive their portion of the amount paid by the wrongdoers.