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 New Hampshire, 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 statements or omissions of material facts related to publicly-traded securities. The New Hampshire Uniform Securities Act (RSA 421-B) also regulates securities within the state, providing additional grounds for civil litigation and enforcement actions by the New Hampshire Bureau of Securities Regulation. Class action lawsuits are a common form of securities litigation, where a group of plaintiffs, often represented by a lead plaintiff, file a claim on behalf of all investors who were similarly affected during a specified period. These cases typically seek to recover financial losses resulting from the alleged violations. It is important for plaintiffs in New Hampshire to work with an attorney who is well-versed in both federal securities laws and the specific provisions of New Hampshire's securities regulations when pursuing such litigation.