Misleading Securities Statements

One of the federal securities laws that deals with securities statements is the Securities Exchange Act of 1934. Under the Securities Exchange Act, Rule 14a-9 was enacted to prohibit false or misleading statements. Rule 14a-9 states:

No solicitation … shall be made by means of any proxy statement, form of proxy, notice of meeting or other communication, written or oral, containing any statement which, at the time and in the light of the circumstances under which it is made, is false or misleading with respect to any material fact, or which omits to state any material fact necessary in order to make the statements therein not false or misleading …

Under federal securities laws investors and others harmed by false or misleading statements can file civil lawsuits to recover their losses.

Gibbs Law Group encourages persons who know about possible securities violation to contact the firm. Under the SEC whistleblower laws promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act, whistleblowers may be receive a reward of up to 30 percent of the recovery for information leading to a successful enforcement action by the SEC and are protected from employer retaliation. If you believe that you have information about a securities violation, please contact us.