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 Maryland, 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 false or incomplete information when buying or selling securities. Maryland has its own securities law, known as the Maryland Securities Act, which also provides a legal basis for securities litigation. This state law complements federal regulations and addresses fraud, misrepresentation, and deceit in the sale and purchase of securities within the state. Class action lawsuits are a common form of securities litigation, where a group of plaintiffs with similar claims against a company can collectively bring a case to court. An attorney representing the class must demonstrate that the case meets certain criteria to be certified as a class action under both federal rules and Maryland state law. These criteria include commonality of legal or factual issues, adequacy of representation, and that the class action is the most efficient and fair way to resolve the controversy.