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 Mississippi, 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 framework for securities regulation, including the rules against fraudulent activities and misrepresentation in the sale of securities. These laws allow investors to file lawsuits if they believe they have been misled or defrauded in the securities market. Mississippi securities laws, found in the Mississippi Securities Act, also regulate the sale and distribution of securities within the state and provide remedies for investors who have been harmed by violations of the Act. Class action lawsuits are a common form of litigation in securities cases, allowing a group of plaintiffs to sue on behalf of all investors who were similarly affected during a specified period. These lawsuits typically allege that the company made false or misleading statements or failed to disclose important information, impacting the value of the securities purchased or sold by the class members.