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 Connecticut, securities litigation is governed by both federal and state laws. Federal laws such as the Securities Act of 1933 and the Securities Exchange Act of 1934 primarily regulate the conduct of securities transactions and disclosures to protect investors against fraud. These acts allow investors to file lawsuits if they have been misled by companies in which they have invested. The Connecticut Uniform Securities Act also provides regulations at the state level, including the registration of securities, anti-fraud provisions, and the regulation of securities professionals. Plaintiffs in Connecticut can file class action lawsuits if they meet certain requirements, such as demonstrating that a large number of individuals have been similarly affected, and that the claims of the class representatives are typical of the claims of the class. These lawsuits often allege that the company made false or misleading statements or failed to disclose important information, impacting the value of the securities purchased or sold. Attorneys representing plaintiffs in securities litigation must navigate both federal and state regulations to effectively argue their case.