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 West Virginia, 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 disclosures to protect investors against fraud. These acts allow investors to file lawsuits if they have been misled by companies in which they have invested. The West Virginia Uniform Securities Act also provides a framework for securities regulation within the state, including provisions for civil liabilities in cases of fraud or deceit in the sale or purchase of securities. Class action lawsuits are a common form of litigation in this area, enabling a group of plaintiffs to sue on behalf of all investors who were similarly affected during a specified period. These lawsuits typically allege that the company made false or misleading statements or failed to disclose important information, impacting the value of the securities. Attorneys representing plaintiffs in securities litigation must navigate both federal and state regulations to effectively argue their cases.