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 Colorado, securities litigation is governed by both federal and state laws. Federal laws include the Securities Act of 1933 and the Securities Exchange Act of 1934, which provide the basis for actions against companies and individuals for fraudulent activities related to the issuance and trading of securities. These laws allow for private lawsuits, including class actions, when investors suffer losses due to false or misleading statements or omissions of material facts by issuers or sellers of securities. The Colorado Securities Act also provides a framework for securities litigation at the state level, offering protections against fraud in the sale and purchase of securities and allowing for civil remedies. Plaintiffs in Colorado can file securities litigation in either federal or state court, depending on the specifics of the case and the jurisdictional requirements. Class actions are common in securities litigation, allowing a group of plaintiffs with similar claims to sue on behalf of all class members who were affected during the specified class period.