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 Washington State, securities litigation is governed by both federal and state laws. Federal laws include the Securities Act of 1933 and the Securities Exchange Act of 1934, which provide the basis for actions against issuers, underwriters, and others for misrepresentations and omissions of material facts in the sale of securities. The Securities Litigation Uniform Standards Act (SLUSA) also plays a role in determining whether a securities class action can proceed in state or federal court. Washington State has its own securities regulations, known as the Washington Securities Act, which is similar to federal laws and allows for civil liability in cases of fraud or deceit in the sale or purchase of securities. Class action lawsuits are a common mechanism for pursuing claims on behalf of a large group of investors who have been similarly affected by the alleged misconduct. These lawsuits must meet specific criteria to be certified as a class action, and they are typically filed in federal court if they involve nationally traded securities. However, state courts may also have jurisdiction in certain cases, especially if the alleged violations are of state securities laws.