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 Missouri, 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 like fraud, misrepresentation, and insider trading. These laws allow investors to file lawsuits if they have been misled by companies in which they have invested. On the state level, the Missouri Securities Act of 2003 also regulates securities transactions and provides remedies for investors who have been harmed by violations of the Act. Securities litigation in Missouri can be filed as individual lawsuits or class actions, where a small group of plaintiffs represents the interests of a larger group of investors who have been similarly affected during a specified class period. Plaintiffs in these cases typically seek to recover financial losses resulting from the purchase or sale of securities based on false or misleading information.