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 Dakota, 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 North Dakota Securities Act also plays a role at the state level, providing regulations and remedies for securities fraud within the state. Class action lawsuits are a common form of securities litigation, where a group of plaintiffs with a common claim against a company can join together to file a lawsuit. These class actions are often based on allegations that the company made false statements or failed to disclose important information, affecting the value of the securities during the class period. Plaintiffs in these cases seek to recover losses incurred as a result of the alleged misconduct. It is important for individuals involved in securities litigation in North Dakota to consult with an attorney who is experienced in both federal securities law and the specific provisions of North Dakota securities law.