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 Nebraska, 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 primarily regulate the conduct of securities transactions and disclosures to protect investors against fraud. These acts allow investors to file lawsuits if they have been misled by a company issuing or trading securities. The Nebraska Securities Act also provides regulations at the state level, including the registration of securities, broker-dealers, and investment advisers, as well as enforcement provisions. Plaintiffs in Nebraska can file class action lawsuits if they meet certain criteria, such as demonstrating that a large number of individuals have been similarly affected, and that the class representatives can adequately protect the interests of the class. 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 plaintiffs during the class period.