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 Georgia, 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 Georgia Securities Act of 1973 also regulates the sale of securities and provides remedies for investors who have been harmed by violations of the Act. Securities litigation in Georgia can be filed as individual lawsuits or class actions, where a small group of plaintiffs represents the interests of a larger group of investors who have been similarly affected. The Georgia Uniform Securities Act (2008) further outlines the state-specific requirements and legal recourse available to investors. Attorneys practicing in this area must be well-versed in both federal and state securities laws to effectively represent their clients in securities litigation.