Defending Federal Securities Fraud Claims Toolkit
Resources to help counsel defend lawsuits brought by private plaintiffs based on securities fraud claims. Specifically, this Toolkit contains resources focused on private actions asserting claims of material misstatements or omissions in violation of Section 10(b) and Rule 10b-5 of the Securities Exchange Act.
Securities fraud refers to the practice of intentionally inducing investors to make purchase or sale decisions about a security ( www.practicallaw.com/1-382-3810) on the basis of false or misleading information. Federal laws prohibit any manipulative or deceptive tactic in the purchase or sale of a security, whether or not the security is registered for sale on a public exchange.
Most federal securities fraud cases that plaintiffs base on alleged misstatements or omissions about a stock or other security involve:
Section 10(b) of the Securities Exchange Act of 1934 ( www.practicallaw.com/5-382-3808) (as amended) (Exchange Act), which prohibits fraud in the purchase or sale of securities (15 U.S.C. § 78j(b)).
Securities and Exchange Commission ( www.practicallaw.com/9-382-3806) (SEC) Rule 10b-5 ( www.practicallaw.com/0-382-3778) , which contains the general, catch-all, anti-fraud provision of the federal securities laws (17 C.F.R. § 240.10b-5).
This Toolkit contains resources focused on defending against private suits that assert claims under these provisions.