What is securities litigation and why is it important to institutional investors?
Securities litigation – actions alleging violations of federal or state securities laws – is one of the most important tools that institutional investors can use to recover assets lost through fraud or other corporate misconduct. While the Securities and Exchange Commission and the Department of Justice are the primary governmental regulators with respect to these issues, they do not have the resources necessary to prosecute most of the frauds that occur. Thus, it is critical that individual shareholders, and in particular institutional investors, initiate litigation on their own behalf (and on behalf of their fellow shareholders) to ensure that damages caused by fraud are remedied.
