Securities Fraud Under the Blue Sky of Washington

In the past, federal courts have been the primary forums for securities fraud litigation because they exercise exclusive jurisdiction over claims under the Securities Exchange Act of 1934, and have expansively interpreted the antifraud provisions of that Act. Recent developments, however, suggest that state courts may provide a more attractive forum for plaintiffs seeking relief from securities fraud in Washington. Relevant considerations include recent United States Supreme Court decisions limiting the scope of civil liability under the 1934 Act, increasing congestion and delay in federal courts, recent amendments expanding the coverage of the civil liability provision of the Securities Act of Washington, and supplemental common law remedies available in state courts. This comment will discuss the often-overlooked alternative of bringing a private civil action for securities fraud in a state court under the antifraud provision of the Securities Act of Washington, or common law theories of fraud or negligent misrepresentation.