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 California, securities litigation is governed by both federal and state laws. At the federal level, the Securities Act of 1933 and the Securities Exchange Act of 1934 are the primary statutes that provide the basis for securities litigation. These laws are designed to protect investors by ensuring full disclosure and addressing fraud in the securities markets. Plaintiffs may allege that a company or its officers made false or misleading statements or failed to disclose important information, which affected the value of the securities. At the state level, the California Corporations Code also contains provisions that regulate the offer and sale of securities and protect investors from fraud. California's securities laws are often aligned with federal regulations but may offer additional grounds for litigation. Securities lawsuits in California can be filed as individual actions or class actions, where a small group of plaintiffs represents the interests of a larger group of similarly situated individuals. The California courts, as well as federal courts located in California, have jurisdiction over securities litigation involving California companies or affecting California investors.