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 Vermont, 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 or incomplete information when buying or selling securities. The Vermont Uniform Securities Act (VUSA) complements federal regulations and provides additional state-specific rules governing the sale and distribution of securities within the state. Under VUSA, the Vermont Department of Financial Regulation oversees the enforcement of securities laws, and investors may also have the right to bring private actions against issuers or sellers of securities for violations of state law. Class action lawsuits are a common form of litigation in this area, allowing a group of plaintiffs to sue on behalf of all investors who were similarly affected during a specified class period. Attorneys representing plaintiffs in securities litigation must navigate both federal and state regulations to effectively advocate for their clients' rights.