Securities litigation is one of the most complex areas of law. If you’re involved in securities litigation, you need experienced legal representation to guide you through the issues in the case and reach a favorable outcome. At Woods Lonergan PLLC, our seasoned attorneys provide clients with skilled, efficient, and practical legal representation. For over 30 years, our firm has handled some of the most complex legal matters in all areas of business litigation, including securities law. Contact us for an initial case evaluation to discuss your legal options with a knowledgeable New York litigation attorney.
What Is Securities Litigation?
Securities litigation involves legal disputes concerning securities. Securities include tradeable financial assets such as stocks, bonds, and futures. Securities litigation typically arises when an investor suffers a financial loss due to fraud or misconduct by a corporation, its officers/directors, or controlling stockholders.
Common Types of Securities Claims
At Woods Lonergan PLLC, our experienced legal team represents individuals and businesses in securities claims such as:
- Sales of unregistered securities: State and federal securities laws require issuers of securities to register the securities or qualify for an exception to registration before selling securities. Purchasers of unregistered securities may have a claim for rescission or a refund of the purchase price.
- Breach of fiduciary duties: Investors might assert breach of fiduciary duty claims against a corporation’s officers, directors, and controlling stockholders. Such claims may involve allegations of corporate mismanagement/waste, self-dealing, or conflicts of interest.
- Inadequate disclosures: Issuers of securities typically must provide disclosures to prospective investors. Securities litigation may involve allegations that such disclosures omitted or misstated information material to the decision to invest, such as financial performance or potential risks to the investment.
- False/fraudulent statements: Investors who suffer losses or miss out on stock growth might claim that a corporation and its directors and officers made false or fraudulent statements about the company’s operations or performance, including misstating or concealing adverse news, downplaying potential risks, or using creative accounting to hide poor financial performance.
- Market manipulation: Securities litigation may arise from allegations that companies or individuals engaged in market manipulation to either depress the value of an investment or increase the value of the company’s securities or the individual’s investments.
- Insider trading: Individuals with access to a company’s confidential or non-public information may use that information to trade securities to gain an advantage over the investing public.
- Mergers and acquisitions: Shareholders of a company involved in a merger or acquisition might bring claims alleging that the companies involved in the transaction, their officers/directors, or other interested parties engaged in misconduct to secure value from the transaction for themselves at the expense of other shareholders.
What to Expect in Securities Litigation
Securities litigation may take various forms, including:
- Investor lawsuits: Individual investors may sue companies or their directors, officers, and controlling stockholders to assert securities-related claims.
- Derivative claims: Some securities litigation involves claims that a corporation has against its directors and officers. A corporation’s shareholders can pursue those claims on behalf of the corporation through derivative litigation. However, derivative claims require shareholders to show that the company’s board either refused to pursue the claims or lacked the independence to evaluate a litigation demand.
- Class action lawsuits: Many shareholder claims lead to class action lawsuits, particularly in cases involving claims of fraud or breaches of fiduciary duties affecting stock price or merger consideration.
- SEC/State securities agency enforcement actions: State and federal securities regulators may initiate enforcement actions against corporations or other issuers of securities when regulators find evidence of securities laws/regulations violations. Enforcement actions may result in fines or, in rare cases, criminal penalties.
Securities litigation frequently involves extensive factual matters and complex legal issues. In litigation, you can expect to undertake a thorough investigation process to secure all available evidence, including engaging in electronic discovery to gather, organize, and review corporate records. Litigation often involves numerous depositions of corporate officials and other parties, such as financial experts, to opine on technical matters such as stock prices or lost merger consideration.
Why Choose Woods Lonergan PLLC for Your Case?
Choosing the right legal counsel for securities litigation can make a difference in the outcome of the case. For over three decades, clients and businesses have turned to the legal team of Woods Lonergan PLLC for effective legal representation because of our reputation as one of New York City’s leading corporate firms. We offer skilled, dedicated, and cost-effective legal representation to clients with business and corporate needs. Each of our partners has developed in-depth knowledge and experience in their areas of practice, and our collective approach to working on cases allows us to provide clients with advocacy and representation rivaling that of larger law firms. Yet, as a small firm, we still provide clients with a personal touch. When you turn to us for help in securities litigation, you can expect our team to provide clear, concise, and honest answers to your questions and legal issues. We have a proven record of success in complex litigation matters, representing thousands of clients in various circumstances, taking on and winning against the most successful firms in New York.
How Our Firm Can Help with a Securities Litigation Matter
The complex and time-consuming nature of securities litigation can severely disrupt your organization. When you turn to Woods Lonergan PLLC for help with a securities case, you can expect our firm to handle all the aspects of the litigation to protect your interests, including thoroughly investigating the matter, managing discovery, and developing compelling arguments to support your claims. We can also help you explore alternatives to traditional litigation to resolve the dispute, such as mediation or arbitration, which can save you or your organization time, money, and stress.
Contact Us Today to Discuss Your Legal Options
If you have a securities claim or your company faces litigation filed by investors, you need experienced legal representation to guide you through the complexities and challenges of securities litigation. Contact Woods Lonergan PLLC today for an initial consultation to learn how our firm can help you protect your rights and interests in a securities case.