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 Louisiana, 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 primarily regulate the conduct of securities transactions and are designed to protect investors against fraudulent activities in the securities markets. These laws allow investors to file lawsuits if they have been misled by false or incomplete information when buying or selling securities. At the state level, the Louisiana Securities Law provides additional regulations and remedies for investors. Class action lawsuits are a common form of securities litigation, 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 cases typically allege that the company in question made false statements or failed to disclose important information, impacting the value of the securities. Attorneys representing the plaintiffs in such cases aim to recover losses on behalf of the affected investors.