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 Maine, securities litigation is governed by both federal laws and state statutes. 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 from fraud and ensure transparency in the marketplace. These laws allow investors to file lawsuits if they suffer losses due to misleading statements or omissions of material facts by a company. At the state level, the Maine Uniform Securities Act provides additional regulations and remedies for securities fraud. This act allows the Maine Office of Securities to investigate and enforce actions against fraudulent securities practices. Class action lawsuits are a common form of litigation in this area, where a group of plaintiffs, often represented by a lead plaintiff, file a lawsuit on behalf of all investors who were similarly affected during a specified period. Attorneys representing the plaintiffs in securities litigation must demonstrate that the defendants violated securities laws, resulting in damages to the investors. It's important to note that both federal and state securities laws have specific statutes of limitations, which dictate the time frame within which an investor can file a lawsuit.