F. State Law Securities Causes of Action

• Library: South Carolina Damages (SCBar) (2009 Ed.)

F. State Law Securities Causes of Action

1. Express Civil Remedies

In 2006, South Carolina's adoption of the Revised Uniform Securities Act became effective. The revision's civil liability provisions are found in section 509.¹⁰² In part, section 509 parallels section 12 of the 1933 Act, and federal law will continue to be looked to for guidance.¹⁰³ The state remedy is superior to the investor's rights under federal because attorneys' fees are recoverable. Additionally, the state statutory securities claim represented by section 509 has been broadened over the prior statute in two important respects. First, violations of the state counterpart to 10b-5, section 35-1-501 of the South Carolina Code, are now expressly subject to civil liability, a major change that will benefit investors. Second, the statute expressly reaches aiders and abettors of securities fraud, which is another major change in favor of defrauded investors found in the new law.¹⁰⁴

These statutory remedies are in addition to the robust common law remedies for oppressed shareholders.¹⁰⁵

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