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 Tennessee, 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 and trading of securities. These laws allow investors to file lawsuits if they have been misled by false or incomplete information when buying or selling securities. The Tennessee Securities Act of 1980 also plays a role at the state level, providing additional regulations and remedies for securities fraud. Class action lawsuits are a common form of litigation in this area, where a group of plaintiffs, often represented by a lead plaintiff, file a lawsuit on behalf of all investors who were similarly affected during a specified period. These lawsuits typically seek to recover financial losses resulting from the purchase or sale of securities based on misleading information. Attorneys representing clients in securities litigation must navigate a complex mix of federal and state laws to effectively advocate for their clients' rights.