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 Minnesota, 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 provide the basis for most securities litigation, addressing issues of fraud and misrepresentation in the sale of securities. These laws allow investors to file lawsuits if they have been misled by false or incomplete information when buying or selling securities. The Minnesota Securities Act also plays a role, providing state-level regulation of securities transactions and offering additional avenues for legal recourse. Class action lawsuits are common in securities litigation, enabling a group of plaintiffs to sue on behalf of all investors who were similarly affected during a specified period, known as the class period. Plaintiffs in these cases typically seek to recover financial losses resulting from the purchase or sale of securities based on misleading information. Attorneys representing clients in securities litigation must navigate a complex interplay of federal and state regulations to effectively advocate for their clients' rights.