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 Kentucky, 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 laws allow investors to file lawsuits if they have been misled by false or incomplete information when buying or selling securities. The Kentucky Securities Act also provides regulations at the state level, mirroring many of the protections found in federal law. Class action lawsuits are a common form of securities litigation, where a group of plaintiffs with a common claim against a company can join together to file a lawsuit. These class actions are often based on allegations that the company made false statements or failed to disclose important information, impacting the value of the securities purchased or sold by the class members. Attorneys representing the plaintiffs in such cases aim to prove that the company's actions resulted in financial losses for the investors during the specified class period.