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 Illinois, securities litigation is primarily governed by federal laws, such as the Securities Act of 1933 and the Securities Exchange Act of 1934, which provide the basis for legal action when there are allegations of fraud, misrepresentation, or other misconduct in the sale or trading of securities. Plaintiffs in securities litigation may allege that a company or its officers made false or misleading statements or failed to disclose important information, impacting the value of the securities. While federal law sets the overarching rules, Illinois state law can also play a role, particularly through the Illinois Securities Law of 1953, which regulates the offer and sale of securities within the state and provides for state-level enforcement and private rights of action. Securities litigation in Illinois often takes the form of class actions, where a group of plaintiffs with similar claims against a defendant is represented collectively by a lead plaintiff. These cases can be complex and typically require the expertise of an attorney with experience in securities law and class action litigation.