Riverside County Attorneys Advise Clients Statewide on California Corporate Securities Law
Schlecht, Shevlin & Shoenberger litigates securities law cases for California clients
Securities professionals labor under a myriad of securities regulations overseen by dozens of regulatory agencies, both state and federal. Brokers, investment firms, and companies who issue securities are among those whose activities are closely scrutinized by these agencies and by their clients and shareholders who entrust their finances to them. It is no wonder that securities litigators enjoy a bustling business. If you are faced with a regulatory securities law violation or a civil suit in California, contact the securities litigators at Schlecht, Shevlin & Shoenberger, serving Riverside and San Bernardino Counties and all of California. Securities litigation requires a specialized knowledge of the securities laws and securities defense tactics that few attorneys possess.
Security laws in a nutshell
Federal securities laws are statutes and regulations governed by the Securities and Exchange Commission. These laws are extremely complex, but they have one purpose: to ensure full disclosure by those issuing securities and transparency by those trading in securities. The two most important statutes are the Securities Act of 1933 that governs the issuance of securities and the Securities Exchange Act of 1934 that governs the retail business of trading, purchasing and selling stock.
Securities regulations are the “rules” of the securities business. The best-known regulations are Rule 10b and Rule 10b-5 (15 USC Sec. 78j), known as the Anti-Fraud provisions. Generally, these rules prohibit devices, schemes or “artifices” to defraud investors and hold companies and securities traders liable for failing to disclose material facts that could influence an investor’s investment decisions.
Casting a wide net for offenders
Most securities law litigation in California flows out of alleged violations of these rules. The courts hold a wide range of parties responsible for full and accurate disclosure of information to investors; consequently, investors can sue brokers, investment firms, companies that issue stock, broker-dealers, and anyone who commits fraud in connection with the marketing of securities. With this large population of potential defendants, 10b-5 lawsuits are common. Schlecht, Shevlin & Shoenberger, a law corporation, represents both plaintiffs and defendants in 10b-5 lawsuits.
California securities laws
Adding to the complexity, each state, including California, has its own corporate securities laws. The securities laws of the states are known as “Blue Sky Laws.” State laws regulate the sale of securities in the state and include the registration and reporting requirements for brokers and investment advisers doing business in the state. State agencies can bring actions against violators under the state’s laws.
A good defense
Schlecht, Shevlin & Shoenberger’s attorneys represent those in California charged with violations of both federal and state securities laws. The ramifications of such charges are significant. Not only can violators lose their licenses and incur stiff penalties, they can go to prison. Those charged with violations must choose an attorney with experience and a good track record in defending securities laws violations. Not every attorney or law firm has this expertise. Schlecht, Shevlin & Shoenberger’s Riverside attorneys enjoy a reputation throughout California for success in securities litigation, including civil lawsuits and violations.