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 Jersey, 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 basis for actions against issuers, directors, and others for fraudulent activities connected to the sale and trading of securities. Plaintiffs may allege that the defendants made false or misleading statements or failed to disclose material information, impacting investors' decisions. New Jersey also has its own securities laws, known as the New Jersey Uniform Securities Law, which prohibits fraudulent practices in connection with the offer, sale, or purchase of securities within the state. Securities litigation in New Jersey can be filed in federal or state courts, and class action suits are a common mechanism for addressing securities fraud affecting large groups of investors. These class actions allow a plaintiff to sue on behalf of all investors who were similarly affected during a specified period, known as the 'class period.' Remedies in such cases can include monetary damages and injunctive relief.