Securities fraud can be potentially damaging for many individuals and may impact a large number of people. Securities fraud occurs when a party makes a false statement about a company or a stock and individuals, such as investors, rely on the false statements when making financial decisions.Insurance company AIG has agreed through a settlement to pay $960 million for misleading investors during the time period before the financial crisis which led to a taxpayer-funded bailout for AIG. The settlement includes eight securities lawsuits that were seeking class action status and represented numerous investors. Dallas residents may not be aware that the settlement is one of the largest securities fraud lawsuits to follow the financial crisis.
Much of the information concerning the settlement was provided in AIG's quarterly financial filing to the Securities and Exchange Commission. AIG and lawyers representing investors agreed to the settlement, which was proposed by a mediator, however, the settlement must still be made official. When financial laws that exist to protect the livelihood of individuals are violated, it may be necessary to pursue a claim for the harm suffered.
When many parties have been harmed, securities fraud class action litigation may be a resource for a group of individuals similarly harmed. Those who have lost money investing due to securities fraud may seek to recover losses and damages through legal recourse option available to victims of securities fraud.
Victims of securities fraud may wish to protect themselves by thoroughly understanding how securities fraud occurs, what securities fraud is and the options available to victims of securities fraud in the event it has taken place or investors suspect it has taken place. The legal system provides resources, options and recourse for individuals harmed by securities fraud in order to protect the public from the harms associated with securities fraud.