The Sky is Still Blue in Texas: State Law Alternatives to Federal Securities Remedies

摘要

Recent actions by the United States Supreme Court and by Congress have reduced the number of avenues by which plaintiffs relying on federal law may pursue alleged wrongdoers for securities fraud and have imposed significant additional requirements on plaintiffs suing in federal court to recover from securities fraud. As a consequence, persons who claim injury from some material misrepresentation or omission in the purchase, sale, offer for purchase, or offer for sale securities, or who have suffered as a consequence of some other impropriety relating to such transactions, may find better options available in state court or under state law than are available in federal court or under federal law. For reasons explored in this Article, this seems particularly true in Texas.Under Texas law, persons and entities who sell or offer to sell securities in violation of pertinent statutory provisions, or by means of some misrepresentation or omission of material fact, may be liable to any person or entity who buys securities from or through them. Likewise, persons and entities that buy securities in violation of pertinent statutory provisions, or by means of some misrepresentation or omission of material fact, may be liable to any person or entity that sells securities to or through them.