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 North Carolina, securities litigation is primarily governed by federal laws, such as the Securities Act of 1933 and the Securities Exchange Act of 1934, which provide the framework for regulating the securities industry and 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. 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. North Carolina also has state securities laws, known as 'Blue Sky Laws,' which are found in the North Carolina Securities Act. This Act gives the North Carolina Secretary of State's Securities Division the authority to investigate and enforce actions against fraudulent securities practices within the state. Plaintiffs in North Carolina can file securities litigation claims in either federal or state court, depending on the specifics of the case and the laws allegedly violated.