A cooperative located in the City of Langdell has 12 apartments and, thus, 12 shareholders. The members of the co-op wish to bring a federal court securities action against Desmond, the prior owner of the building. The suit would allege that Desmond created a false prospectus (concealing defects in the building's structure known to him), and then sold shares in the corporation holding title to the building, in violation of a federal securities law provision. Each of the 12 members has a claim worth in excess of $100,000. The co-op members would like to bring their suit as a class action, with three co-op members (selected by a vote of all 12) named as representative plaintiffs. Are they likely to be able to do so? 

A) Yes, because common questions of law or fact predominate, and the class action method is superior to other available methods. 

B) No, because there is no evidence that the representatives will fairly and adequately protect the interests of the class. 

C) No, because there are not enough class members to make joinder of them all as ordinary co-plaintiffs impracticable. 

D) Yes, because the suit alleges that Desmond acted on grounds that apply generally to the class.

Please also explain your answer.

Answer rating: 100% (QA)

Answer D Yes because the suit alleges that Desmond acted on grounds that appl... View the full answer