Securities litigation refers to lawsuits filed by persons or entities who bought or sold publicly-traded securities (tradable financial assets such as stocks and bonds). These lawsuits are often filed as class actions, with one or a few plaintiffs purporting to represent all persons and entities who bought or sold a company’s stocks, bonds, or other securities during a certain time period (class period). Securities lawsuits are typically based on violations of the securities laws, and allege misleading statements or omissions of material facts.

In Alabama, securities litigation is governed by both federal and state laws. At the federal level, the Securities Act of 1933 and the Securities Exchange Act of 1934 are the primary statutes that provide the basis for securities litigation. These laws are designed to protect investors by ensuring full disclosure and addressing fraud in the securities markets. Plaintiffs may allege that a company or its officers made false or misleading statements or failed to disclose important information, affecting the value of the securities. At the state level, the Alabama Securities Act regulates the offer and sale of securities within the state and provides remedies for investors harmed by securities fraud. This Act allows for civil liability in cases where there has been a violation of the state securities laws, such as fraudulent misrepresentation or omission of material facts. Securities litigation in Alabama can be filed as individual lawsuits or class actions, where a group of plaintiffs with similar claims against a defendant are represented collectively. An attorney experienced in securities law would be able to provide specific guidance on the process and requirements for initiating such litigation in Alabama.