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Securities Arbitration
and Litigation - An Overview
The Bell Law Firm, PLLC PLLC Securities Arbitration
Lawyers Charleston, WV / National
At The Bell Law Firm, PLLC PLLC we know the term "securities" covers a number of different instruments including stocks, mutual funds, bonds, notes, debentures, investment contracts, treasury stocks and transferable shares. Our lawyers know when investors lose money because of violations of securities laws by a company, broker-dealer or analyst; they can bring a private suit to hold the defendant liable and can recover damages. Litigation and arbitration over violations of federal and state securities laws can be complex, expensive and time consuming. If you think you may have a case contact an experienced Securities Litigation Lawyer at The Bell Law Firm, PLLC to discuss your situation and potential claims and or suit.
Federal Securities Laws and Acts:
The Securities Act of 1933 was the first federal securities statute. This Act requires that all securities offered for sale has to be registered with the Securities and Exchange Commission unless it is exempted.
The Securities Exchange Act of 1934 established that the Securities Exchange Commission (SEC) and established rules governing the trading, selling or purchasing of securities. This Act contains provisions for anti fraud, reporting and other requirements for issuers of securities, provisions covering oversight of broker-dealers. It requires for proxy solicitations and rules regarding tender offers.
Several other federal laws affect securities litigation. The Private Securities Litigation Reform Act of 1995 (PSLRA) was designed to prevent the "routine filing of lawsuits against issuers of securities and others whenever there is a major change in a stock price, without regard to any underlying culpability of the issuer, and with little hope the discovery process might lend evidence to some plausible cause of action. This Act established rules for securities class actions and brought about several changes affecting cases brought under the securities laws.
To circumvent the strict requirements of the PSLRA, many plaintiffs opted to bring a parallel suit in state court under state law. The Securities Litigation Uniform Standards Act of 1998 (SLUSA) was enacted to curb this practice. Under SLUSA, no "covered class action" based upon state statutory or common law and alleging a misrepresentation or omission of a material fact in connection with the sale or purchase of a covered security, or that the defendant used deceptive devices in connection with the purchase or sale of a covered security may be maintained in state or federal court by any private party.
The Sarbanes-Oxley Act of 2002 (SOX) applies to private securities fraud actions in the form of an amendment to the general statute of limitations of four years. The amendment provides that a separate statute of limitations of the earlier of two years after discovery of the facts constituting the violation or five years after the violation applies to claims of manipulation, deceit, fraud or contrivance.
The statute of limitations provision says nothing contained therein shall create a new or private right of action. An additional provision of Sarbanes - Oxley makes it unlawful for an officer of a public company to purposely guide or mislead auditors reviewing the company's financial statements; it says the SEC shall have exclusive authority to enforce the provision in a civil proceeding.
In addition to the federal securities laws, most states have their own laws addressing some aspect of securities regulation and sales that allow the state's securities commissions to conduct investigations and bring enforcement actions. The experienced attorneys at The Bell Law Firm, PLLC understand all of these Federal ACTS inside and out and are ready to assist and guide you through the mine field of government bureaucracy. Contact our Securities litigation attorneys for a consultation today.
Types of Securities Abuses
The following is a list of some of the most common types of securities abuses committed by companies and individuals, including stock brokers and dealers:
- Insider Trading - when a person with material, nonpublic information buys or sells securities
- Market Manipulation - occurs when a company, investor or broker-dealer undertakes activity in order to create a false impression regarding a security, its trading activity or price movement or other relevant market information
- Churning - when a broker-dealer excessively trades a client's account in order to generate commissions
- Unauthorized Trading - brokers may not carry out trades without investor authorization or in direct contradiction of a client's order
- Fraud, Misrepresentation and Omissions - companies and broker-dealers can be liable for fraud, misrepresentation and omissions if they knowingly disclose false information or fail to provide information to correct statements
- Suitability/Unsuitability - brokers who make investment recommendations that are inconsistent with the client's known investment objectives and financial situation may be subject to claims for losses based on unsuitability
- Misappropriation - occurs when a broker-dealer keeps the proceeds from a sale of a client's accounts for him or herself
- Investment Scams -con artists try to dupe investors with fraudulent investment schemes, often through email and the Internet, by promising unrealistic, large financial returns for a minimal investment
Conclusion:
The federal securities laws can be confusing and claims arising under them are complex. If you have any questions at all you need to contact an experience law firm that understands the laws and how they work. Contact our Securities litigation attorneys at The Bell Law Firm, PLLC PLLC we will be aggressive in the pursuit of protecting your rights.
Located in Charleston, West Virginia, we represent clients in Huntington, Parkersburg, Wheeling, Morgantown, Beckley, Logan, Martinsburg, Clarksburg, Williamson, Lewisburg, Bluefield, Princeton, Elkins, Buckhannon, Fairmont, Pittsburgh PA, Columbus OH, Cincinnati OH, Dayton OH and Nationally
