What Is a Class Period?

In a securities fraud class action filed under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, the class period is the date range during which a defendant company allegedly made false or misleading statements that artificially inflated (or otherwise distorted) its stock price.

Investors who purchased shares during this window are the "class" — the group of people harmed by the alleged fraud. The class period has two critical endpoints:

  • Start date: The date the alleged misrepresentations first entered the market and began inflating the stock price
  • End date: The last date before the corrective disclosure, when the stock was still allegedly trading at an inflated price

The class period is established through legal analysis by securities attorneys reviewing SEC filings, press releases, earnings calls, analyst reports, and trading data. It is not arbitrary — each date corresponds to specific events in the company's disclosed history.

Why June 10, 2024: The Start Date

The start date of the IMMR class period — June 10, 2024 — represents the date on which securities attorneys have identified that Immersion Corporation allegedly began making or maintaining material misrepresentations about its financial condition.

In the context of the IMMR case, the corrective Non-Reliance 8-K filed in September 2025 disclosed that the following financial periods were unreliable:

  • Q2 FY2024 — the quarter ending in or around June–July 2024
  • Q4 FY2024 — the quarter ending in late 2024
  • Q1 FY2025 — the quarter ending in early 2025

The class period start date anchors to the beginning of the period when financial data was allegedly being misrepresented. Investors who purchased IMMR shares on or after June 10, 2024 did so while the market was allegedly operating on inaccurate information about the company's financial health.

Key principle: The start date is chosen because that is when the alleged false information first contaminated the market price. Purchases before this date, while the company was (allegedly) reporting accurately, do not fall within the class.

Why July 30, 2025: The End Date

The end date — July 30, 2025 — is the last day investors are alleged to have purchased IMMR shares at an artificially inflated price before the truth was disclosed. This date precedes the September 8–9, 2025 Non-Reliance 8-K by approximately six weeks.

The end of a class period can correspond to several types of events:

  • The date a partial corrective disclosure was made
  • The date trading was halted or material information leaked to the market
  • The last date the stock traded before the alleged fraud was fully revealed

For IMMR, July 30, 2025 is the date identified as the last point at which investors purchased shares without the benefit of information that would have materially affected their investment decision. Purchases on or before July 30, 2025 fall within the class; purchases on July 31, 2025 or later do not.

The September 2025 Corrective Disclosure

The corrective disclosure for the IMMR class action came on September 8–9, 2025, when Immersion Corporation filed a Non-Reliance 8-K under Item 4.02. This filing formally acknowledged that financial statements for Q2 FY2024, Q4 FY2024, and Q1 FY2025 "should no longer be relied upon."

1

June 10, 2024 — Class Period Begins

First allegedly false or misleading financial statements enter the market. IMMR stock price allegedly begins trading at an artificially inflated price.

2

During Class Period — Misrepresentations Alleged

Immersion Corporation files quarterly reports (10-Q) and annual reports (10-K) for Q2 FY2024, Q4 FY2024, and Q1 FY2025 that are later declared unreliable.

3

July 30, 2025 — Class Period Ends

Last day investors purchase IMMR shares at the allegedly inflated price, without knowledge of the forthcoming corrective disclosure.

4

September 8–9, 2025 — Corrective Disclosure

Immersion files Non-Reliance 8-K (Item 4.02). Board declares three quarters of financial statements should no longer be relied upon. Stock price drops.

The gap between the class period end date and the corrective disclosure date is legally significant. It reflects the period when attorneys allege the information was becoming apparent to insiders or when partial information began to correct the market price, even before the formal disclosure.

How the Class Period Determines Eligibility

The class period is the threshold eligibility criterion — it is the first question any attorney will ask when evaluating your claim. Here is how it works in practice:

  • You must have purchased during the class period. Purchase dates of June 10, 2024 through July 30, 2025 qualify. Purchases outside this window do not.
  • You must have suffered a loss. If you purchased during the class period but sold before the corrective disclosure (or sold at a price above your purchase price), you may not have a compensable loss. A loss typically means you paid an artificially inflated price and then experienced a stock price decline when the corrective disclosure was made.
  • The shares must have been purchased on the open market. Shares received through employee stock plans, stock options, or other non-market mechanisms may not qualify.

Still holding IMMR shares? If you purchased during the class period and still hold the shares, you may still have a compensable loss. Your loss would be measured as the difference between what you paid and the post-disclosure trading price. A securities attorney can calculate this for you.

What If You Bought Across the Class Period Boundary?

Many investors built positions in IMMR over time through multiple purchases. If some of your purchases fall within the class period and others do not, only the in-class-period purchases will be evaluated for the class action.

For example:

  • Purchases on May 1, 2024 — outside the class period, does not qualify
  • Purchases on August 15, 2024 — inside the class period, may qualify
  • Purchases on August 5, 2025 — after the class period ends, does not qualify

The shares purchased inside the class period are evaluated based on the loss calculation method applicable to that purchase date and price. Attorneys typically use the "FIFO" (first in, first out) or "LIFO" (last in, first out) accounting method to determine which shares were held and sold.

Frequently Asked Questions

Q: I bought IMMR before the class period. Can my pre-class-period losses be included?

Generally no. The class action is specifically for purchases made during the alleged misrepresentation period. Pre-class-period purchases were made when the company was (allegedly) reporting accurately. However, if you purchased both before and during the class period, your in-class-period purchases may still qualify.

Q: I sold my IMMR shares before the corrective disclosure in September 2025. Do I still qualify?

If you sold before the corrective disclosure, your loss analysis becomes more complex. You may still qualify if you can demonstrate that the stock price declined after your purchase and that some portion of that decline was attributable to the alleged misrepresentations rather than market-wide factors. This requires attorney analysis.

Q: Is the class period ever subject to change?

Yes. Class periods can be refined during litigation as attorneys develop more information through discovery. The dates stated here reflect the current class period as identified by securities attorneys, but investors should verify the latest filings for any updates.