Investors rely on corporate disclosures and other public statements about securities in order to decide whether to invest. Both state and federal securities laws prohibit false or misleading statements in the sale of securities, but unfortunately companies often fail to comply with these requirements.
Investors can suffer significant financial losses as a result of false or misleading statements. At Girard Gibbs LLP, our securities attorneys represent investors to recover their losses and stop fraud in the sales of securities.
Securities Laws Prohibit False or Misleading 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.
Report False or Misleading Statements to Our Attorneys
Speak with one of our securities attorneys by calling (866) 981-4800 or by filling out the form to the right.
Girard Gibbs 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 at 866.981 4800 or by filling out the form at the right.