You May Have Rights Under the Indiana Securities Act
In Indiana, companies and individuals offering and selling securities or investment advice must comply with the Indiana Securities Act, Indiana Code § 23-19-1 et seq. (the “Act”). The Indiana Securities Act, and the Indiana case law interpreting the Act, allows private litigants – typically the purchasers of securities or investment advice – to sue for damages. These damages include, but are not limited to, a return of the purchase price, interest at the rate of eight percent per year on the amount of the purchase price, attorney’s fees, and other litigation expenses.
Claims under the Indiana Securities Act are typically based upon one or both of the following violations of the Act:
(1) The person who sold the securities or rendered the advice was not properly licensed or the company who issued the security was not properly registered with the State of Indiana; and/or
(2) The promotor of the security or the person rendering the advice violated the Act’s Section 23-19-5-1 which states in pertinent part:
“It is unlawful for any person in connection with the offer, sale or purchase of any security, either directly or indirectly, … to make any untrue statements of material fact or to omit to state a material fact necessary in order to make the statements made in light of the circumstances under which they were made not misleading.”
In conclusion, persons who either purchase or sell securities who reside in the State of Indiana or who reside outside of Indiana but who are dealing with an Indiana issuer of securities or an Indiana broker or investment advisor, may have claims under the Indiana Securities Act for the following violations:
(1) The person promoting the sale of the security or the investment advisor giving the advice are not properly licensed;
(2) The company issuing the security is not properly registered;
(3) The person promoting the sale of the security or the investment advisor giving the advice makes untrue statements of material fact; or
(4) The person promoting the sale of the security or the investment advisor fails to state material facts.
Indiana’s Securities Act and the case law construing the act is some of the most paternalistic law in the country in protecting investors. By this we mean that the Indiana law is very protective of victims of securities fraud. Furthermore, when it comes to damages which result from a violation of the Indiana Securities Act, Indiana’s damages are much broader than many states.
Starr Austen & Miller has represented hundreds of investors in making claims under the Indiana Securities Act. If you are a victim of investment fraud or if you have suffered the misfortune of dealing with a stockbroker or investment advisor who has mislead or lied to you, we may be able to help you recover damages. Contact us as soon as possible for a free no commitment first consultation.