Financial Litigation

Financial litigation law governs the court process of resolving disputes relating to financial and money transactions. These disputes involve banks, credit card companies, brokerage firms, private equity funds, and insurance companies. Financial litigation is a combination of civil, criminal and administrative law that arises from financial transactions. Financial litigation is composed of both federal and state laws, administrative regulations and court decisions.

The federal government enacted several laws for banks and financial institutions to comply with certain standards as banking and finance are two of the highly regulated industries in the country due to the nature of the products and services they provide. Banking and finance transactions deal with sensitive matters, and, as such they are protected by law, like the Bank Secrecy Act and Truth in Lending Act. Other federal financial legislation include Dodd-Frank Act, Consumer Protection Act, and Fair Debt Collection Practices Act. In addition to the federal government, there are other agencies who have oversight on specific financial transaction, such as the Securities and Exchange Commission towards the registration of public companies and disclosure of stock trading. Financial litigation law touches on a broad spectrum of issues such as securities law, corporate law, consumer law, and bankruptcy law.

Among the most common financial litigations are actions challenging a company's transaction, which transaction may have caused a change in the trading price of stocks, insider trading, and securities trading fraud. Aside from the company, officers and directors are routinely named defendants in derivative actions. Financial litigators represent either the client or the company these cases. Clients often choose to sue companies through a class action as the anticipated pay-out in class actions are higher compared to individual suits. In addition, the costs of pursuing a class action is also shared among the class members, while the costs of pursuing an individual action is shouldered only by the plaintiff. Moreover, there is strength in numbers that's why victims of securities fraud or insider trading choose to sue as a class.

Financial litigation is a complex dispute that will touch on intertwining laws. It will not just touch on the complicated web of federal and state laws and regulations, but also often encroach on international laws regarding financial transactions. Financial transactions are also sophisticated transactions, which means these transactions involve legalese that takes experts to un-weave. Because the monetary value of financial disputes are often high, parties tend to litigate in order to either recover the money lost or refuse to pay the money lost. In addition, violations of banking and finance rules and regulations are met with steep punishment. These types of litigation are also often highly publicized, so being charged with any violation of banking or finance law could severely affect the reputation and future business prospects of companies, and their officers and directors. In addition, settlements arising from financial litigation have the possibility of draining a company's resources.

It is for these reasons that companies have a retinue of financial litigators to defend them in cases of banking and finance law violations. Financial litigators are not just skilled in defending companies, they are also knowledgeable in matters of regulation, enforcement, and transactions.

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Defamation Law - Legal Information and Resources

Defamation Law

Freedom of speech is a personal right granted to all individuals as enshrined by the Constitution. Freedom of speech, however, is not absolute. Freedom of speech is limited when that freedom encroaches on another individual's freedom. Defamation -- the act of creating false statements about a person and communicating those statements to another person, causing harm to the subject's reputation and standing in the community.

Defamation is governed primarily by state law. Although the Constitution and case precedents interpreting freedom of speech also form a crucial part of defamation law. While state law differs as to the specific acts that constitute defamation, the types of harm caused by such act, and the penalties that accompany such act, the general elements that must be proved are basically similar.

Defamation is called libel, when the defamatory statements are printed, written, or broadcasted, and called slander when the defamatory statements are communicated orally. While defamation per se is not difficult to prove as the statements are so vicious the harm is obvious, libel and slander may not be as easy to prove. For one, proving that the false statements were communicated as fact, rather than opinion, is difficult, the aggrieved party would need a lawyer who specializes in these types of cases. Moreover, proving intent and damages require extrinsic evidence that may be difficult to obtain, especially when freedom of speech is taken into consideration. Malice, for one, is difficult to prove as the aggrieved party need to produce clear and convincing evidence that the person who communicated the false statement knew beforehand that the statement was false.

In addition to proving defamation, intent, and harm, one of the more difficult tasks for defamation attorneys is countering the defense's possible argument that the false statement is not defamatory. Typical defense for defamation would be that the statement was an opinion based on accurate facts, minor reporting errors, and the statement was the truth. The U.S. Supreme Court has, in many cases, ruled that government officials, political candidates, heroes, and celebrities are generally exempted from filing defamation cases with respect to their status as public figures, except when malice or intent is proven.

The harm, which include being shamed, hated, or belittled, caused by the defamatory statements gives rise to damages. Most states would require that the damaged party demand a printed retraction of the defamatory statement before proceeding to filing a case in court. If the damaged party decides to sue without first seeking retraction or if the damaged party receives a retraction but proceeds to sue anyway, most states will limit the damages the damaged party may pursue to the actual or special damages they experienced, such as loss of employment or wages. If it is proven that the person who made the false statements acted with intentional malice, then the aggrieved party will be entitled to additional damages, including damages for loss of business. It is thus wise for the damaged party to seek advice from counsel before making any step towards seeking restitution, as making one wrong move could lessen the damages that is due the aggrieved party.

Areas of Law