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 York, 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. These laws are designed to protect investors by ensuring full disclosure and fair dealing in the securities markets. Plaintiffs in securities litigation may allege that a company or its officers made false or misleading statements or failed to disclose material information, which affected the value of the company's securities. Class action lawsuits are common in securities litigation, allowing a group of plaintiffs to sue on behalf of all investors who were similarly affected during a specified period, known as the 'class period.' New York also has its own securities laws, commonly referred to as the 'Martin Act,' which grants the Attorney General broad powers to investigate and prosecute securities fraud. The Martin Act does not require proof of intent to defraud, making it a powerful tool for state-level securities enforcement. Securities litigation in New York can be complex, often involving intricate financial details and requiring the expertise of attorneys who specialize in securities law.