Holding parties responsible for securities fraud

On Behalf of | Dec 18, 2018 | Securities |

If you invest your time or money into a company in the state of New York, it is likely that you will be doing so based on the information that you believe to be true about the organization. When this information proves to have been incorrect, your investment could be a poor one. If the company has intentionally misled you, they could be guilty of securities fraud.

It is possible to take action to recover damages against a company for securities fraud. If you are considering doing this, you should take the time to learn more about the law in the state of New York.

When is the company in question responsible for securities fraud?

If you are a shareholder of a company, you may have been given misleading or incorrect information about the company in order to encourage investment. Alternatively, you may have been encouraged to invest after seeing an artificial increase in stock price as a consequence of the misleading information. In a situation such as this, you may be able to hold the director of the company legally responsible.

When is a third party responsible for securities fraud?

It can also be possible for third parties or traders to be responsible for securities fraud. Insider trading is illegal and occurs when stock decisions are made by a person with confidential company information. Additionally, a person can be charged with securities fraud if they circulate false information about a company.

How can I take action?

It is important that you protect yourself from the financial effects of securities fraud. By understanding the law, you will be empowered to take action when necessary.

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