With over 20 years of experience, the District of Columbia securities lawyers at Antonoplos & Associates are able to help clients quickly and efficiently navigate securities law. At its core, securities law compels publicly traded companies to disclose materials and information that is necessary for potential investors to evaluate a company.
When publicly traded companies forge or do not disclose important information, there are multiple remedies available to current or former investors in the company. Furthermore, investors may seek compensation from the company, the company’s directors and officers, and in certain cases, third-party entities involved with the business. The most common third parties that must pay for damages include investment banks, accounting firms, and outside auditors.
Primary Market Claims
Securities that a company issues on the primary market must make full, true, and plain statements regarding the facts relating to the securities. If a company fails to meet these criteria in any manner or forges any of these documents, a person buying these investments may be able to initiate a legal claim against the issuer of the security, the investment bank involved in the offering, the directors of the issuer, and other parties if applicable. Furthermore, the right of recission is also available if the purchasing party suffers financial damages. Finally, depending on the individual case, investors may sue the company for negligent misrepresentation or fraud.
Secondary Market Claims
In addition to primary market claims that investors may have, publicly traded companies must also disclose information both periodically and timely.
Periodic disclosure must be made at regular intervals throughout a year or other predetermined time period. For instance, periodic disclosure may be required during the interim and annual financial statements along with management discussion and analysis reports. In these reports, the company must state all material facts. In this case, material facts are any information that may have a significant effect on the market price or value of the company’s securities.
Timely disclosure obligations refer to the disclosure of information when a material change in the business operations of capital would have a significant effect on the value of the security.
The reason why companies must disclose both periodic and timely information is that this disclosure helps to make sure all parties investing in the security can have equal knowledge of the company. To protect your company against securities claims, it is vital to hire a District of Columbia securities lawyer. With decades of experience, Antonoplos & Associates group of attorneys can assist you whether you are looking to defend against of bring forth securities claims.
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