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 Mexico, 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 companies in which they have invested. The New Mexico Securities Act also provides a framework for the regulation of securities within the state, including the ability to file civil actions for fraudulent or deceitful practices in the sale or purchase of securities. Class action lawsuits are a common form of litigation in securities cases, allowing a group of plaintiffs to sue on behalf of all investors who were similarly affected during a specified period. These lawsuits typically allege that the company made false statements or failed to disclose important information, impacting the value of the securities purchased or sold by the investors. It is important for plaintiffs in New Mexico to adhere to both state and federal procedural rules when initiating securities litigation, including statutes of limitations and specific pleading standards.