A person who is persuaded to buy or sell stock as a result of a misrepresentation of a material fact or as a result of a failure to disclose material information about the value of the stock or the corporation’s finances, prospects or plans can sue for damages under the California Corporate Securities Law of 1968 and in some instances under the Securities Exchange Act of 1934.
Anybody who materially assisted in the fraud can also be held liable. Liability for securities fraud exists even if the sale or purchase transaction was exempt from registration under federal or state law. A securities fraud lawsuit made under the California Corporate Securities Law can be a powerful way for a defrauded buyer or seller of stock to recover their damages or to have the entire stock sale or purchase transaction set aside. There is a fairly short statute of limitations for bringing such a lawsuit so you should seek legal counsel promptly upon learning that there was fraud in connection with your purchase or sale of stock or any other kind of a security.
If you are a victim of securities fraud and you live in the state of California, call me for a free consultation to discuss your case: San Diego area – (858) 794-4805 | San Francisco area – (415) 536-1530. Or fill out the form at the top right and we can setup an appointment.