An investor is entitled to bring a civil suit to recover his or her losses if the investor purchased securities and suffered damages as a result of an issuer's false or misleading statement.

Civil Suit

A legal proceeding in which one party sues another for a wrong that does not involve criminal sanctions, seeking remedies such as damages or specific performance.

Misleading Statement

Information or assertions that are deceptive, untrue, or create a false impression.

Issuer

An entity that offers securities for sale to the public, typically companies issuing stocks or governments issuing bonds.