The Securities Act Of 1933

The Securities Act of 1933, commonly known as the Securities Act, is the federal statute that governs the initial issuance of securities in the public financial markets. The law is administered and enforced by the Securities and Exchange Commission (SEC). It has two primary goals:

• Ensuring investors receive significant and relevant information about the issue of securities; and
• That the sale of securities is free of deceit, misrepresentation, and other fraud.

To achieve these goals, companies must register offerings of securities with the SEC, providing standardized information that describes the:

• assets and business of the company;
• background of the company’s management; and
• material risks to the investor from investing in the securities.

Companies must also provide financial statements that have been audited by certified public accountants. This information is, in turn, made available by the SEC to the public.

While the US financial markets are known for their transparency and integrity, sometimes bad actors commit fraud. They inflate valuations on assets, misapply accounting principles, siphon off cash, and improperly reflect revenues and expenses in their financial statements.

The Securities Act provides investors who suffer losses with important recovery rights if they can prove that the required disclosure was incomplete or inaccurate.

Whistleblowers can play an important role in helping the SEC prosecute bad actors, but their path can be complicated. It requires experienced SEC Whistleblower lawyers to provide strategic advice, support, and a watchful eye as the case proceeds through the complicated enforcement process.

Attorneys Scott Silver and David R. Chase are nationally recognized securities lawyers with extensive experience representing SEC whistleblowers.

If you think you qualify as an SEC whistleblower, contact us at 1-800-975-4345. You can also reach out online.