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 South Carolina, 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 primary framework for securities regulation, 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 the purchase or sale of securities. The South Carolina Uniform Securities Act also regulates securities within the state, providing additional legal grounds for civil litigation in cases of securities fraud. Class action lawsuits are a common form of litigation in this area, allowing a group of plaintiffs who have been similarly affected by a violation of securities laws to sue collectively. These cases often involve complex financial transactions and require the expertise of attorneys who specialize in securities law and class action litigation.