{"id":352699,"date":"2016-04-04T10:42:08","date_gmt":"2016-04-04T15:42:08","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/consumer\/securities-law\/the-abc-s-of-securities-litigation-claims.html"},"modified":"2024-05-20T07:53:52","modified_gmt":"2024-05-20T12:53:52","slug":"the-abc-s-of-securities-litigation-claims","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/consumer\/securities-law\/the-abc-s-of-securities-litigation-claims.html","title":{"rendered":"The ABCs of Securities Litigation Claims"},"content":{"rendered":"\n
\n \n
\n

The ABCs of Securities Litigation Claims<\/h1>\n
\n
\n By Oni Harton, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

From time to time, you may hear news stories about the Department of Justice (DOJ) investigating and prosecuting cases involving publicly traded companies. These cases can involve hundreds of millions of dollars. Sometimes, monetary amounts reach over a billion dollars. It’s not surprising that these cases grab headlines.<\/p>\r\n

The DOJ<\/a> has a unit devoted to prosecuting fraud and manipulation under U.S. securities law<\/a>. They have entered into landmark resolutions for violations of the commodities and securities laws against investment banks, hedge funds, and other issuers of investment products.<\/p>\r\n

What about individual investors? What kind of claims can you bring? Investors may assert several claims when wrongdoing beyond market forces causes investment losses. Understanding causes of action and what conduct supports a legal claim will help you protect yourself from abuses. You’ll know how to identify actionable conduct if it occurs.<\/p>\r\n

Read on to learn about laws governing the securities industry, the types of claims available, and the procedures used to bring claims.<\/p>\r\n

Securities Laws Governing the Securities Industry<\/h2>\r\n

Congress passed the Securities Exchange Act of 1934 in response to the stock market crash in 1929. Among other things, it created the U.S. Securities and Exchange Commission<\/a> (SEC). <\/p>\r\n

The SEC regulates many aspects of the American markets. These include the following:<\/p>\r\n