Investor Rights In The United States
There are federal and state laws governing investor rights. Unfortunately, the federal laws have been substantially weakened by the Supreme Court and the Congress over the last 20 years, and in many instances now shield large companies more than they protect investors. It is a rare case where Banks Law relies on the federal laws anymore.
On the positive side, most states have strong laws that still protect investors, and those laws apply to almost all individual investor cases. The Uniform Securities Act, some form of which has been adopted in most states, says that brokers, sellers and those who help them cannot misrepresent investments. If they do, they have to return the purchase price with interest to the investor. The USA, as it is known, can be found at www.uniformsecuritiesact.org/usa. It is a long, complex law, but section 509 is the overview of the general law on civil liability. At Banks Law, we have worked with the state securities laws of many states, and are actively involved in monitoring the adoption of and changes to the USA. If you have a question about the USA, or whether it has been adopted in your state, feel free to Contact Us online or call us at 503-222-7475.
The North American Securities Administrators Association, or NASAA, is an organization of state securities regulators charged in part with making sure that the state laws are enforced. They are the dedicated stock cops on the beat in every state. While NASAA members cannot usually seek to recover losses for individual investors as we do, they seek penalties and cease and desist orders against scammers to keep them at bay. We have found them to be extremely helpful in providing us with information, and we are proud to be strong NASAA supporters.
See our other links under Investment Law for overviews of the laws governing claims in three states, Washington, Oregon and Idaho. Questions about other states? Contact Us online or call us at 503-222-7475.