Login

Home

 

• Amicus Committee
• Securities Committee
• Antitrust Committee
• Consumer Committee
• ERISA Committee

Securities Committee

NASCAT member law firms serve the public by representing investors who are the victims of securities fraud.  Examples of prominent securities class action cases prosecuted by NASCAT member law firms include Enron, WorldCom, Global Crossing, and Tyco.  In fact, almost all prominent securities fraud class actions have been prosecuted by NASCAT member law firms.

The stock market crash of 1929 and the ensuing Great Depression are generally credited with providing the impetus for the passage of federal securities legislation.  In 1933 and 1934, Congress passed legislation requiring that investors be informed of material facts concerning securities offered for sale and to otherwise protect the public against the fraud and misrepresentation that was thought to have contributed to the stock market crash.  By enacting federal securities legislation, Congress hoped to restore investor confidence in the securities markets.

Generally, federal securities legislation provides that an investor will have a claim when a corporation with publicly-traded securities makes misleading statements about its performance or prospects or fails to disclose material adverse information to the public.  In a typical securities fraud case, a corporation has published fraudulent statements which have caused its stock price to rise to an artificially inflated level.  As a result of the company’s misstatements or omissions, investors purchased the company’s stock at an artificially inflated price.  When the true information about the company is revealed, the price of the stock drops causing those investors who purchased the stock at the artificially inflated price to lose money on their investment. 

When this occurs, a defrauded investor will frequently retain a NASCAT member law firm to file a class action lawsuit against the company that issued the fraudulent statements to recover losses for all affected investors.  Federal law provides different mechanisms for recovery, depending on the circumstances surrounding the alleged fraud.

If you believe that you have been defrauded, a list of NASCAT member law firms, along with their contact information, is elsewhere on this website.

NASCAT member law firms:  NASCAT is an association of law firms committed to the vigorous prosecution of corporate fraud.

Class action: A class action provides a means for an individual investor or institution to sue on behalf of and represent a large group of investors who were similarly defrauded.

Stock: refers to all type of securities including, but not limited to, common stock, preferred stock, bonds, options, etc.