Securities fraud is a term comprising a wide range of conduct by companies and individual executives and board members that may be illegal. Fraud is a precise legal term. To prove fraud, a person must prove to a court or jury that another person or business committed action intentionally or knowingly in order to deceive or otherwise injury others. Securities fraud is fraud related to the raising of money and the use of that money by businesses. Securities fraud lawsuits can be filed in state or federal court. Also, the Securities and Exchange Commission sometimes files lawsuits alleging securities fraud. Often, these lawsuits assert that fraud took place because the business did not follow federal law in the way that it raised money from people. Usually, if the case involves fraud, it means the business or executives misstated facts about the business, about how the money was used or about the likelihood of success the business would achieve.
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