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 Michigan, 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. Michigan also has its own securities regulations, known as the Michigan Uniform Securities Act, which provides additional protections against securities fraud and allows for state-level enforcement and litigation. Class action lawsuits are a common form of securities litigation, where a group of plaintiffs with similar claims against a company can join together to file a single lawsuit. These cases often allege that the company made false statements or failed to disclose important information, impacting the value of the securities during the class period. Attorneys representing the plaintiffs in these cases aim to recover losses on behalf of the entire class.