Asia Broadband Inc (AABB)

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AI Overview
Yes, federal securities laws generally preclude punitive damages for claims brought solely under those federal statutes, with courts interpreting the laws (like the Exchange Act) as limiting remedies to actual damages, but you can often get them via accompanying state-law claims (like common law fraud) or in arbitration, where arbitrators can award them, especially when state claims are present.
Why Federal Claims Don't Allow Punitive Damages:
Statutory Language: Section 28(a) of the Securities Exchange Act of 1934 generally limits remedies to "actual damages," implying punitive damages aren't allowed.
Judicial Interpretation: Federal courts have consistently held that punitive damages are unavailable for claims under the Securities Act of 1933 or the Securities Exchange Act of 1934.
How Punitive Damages Can Still Be Available:
Pendent State Law Claims: Plaintiffs often add state law fraud claims (which do allow punitive damages for egregious conduct) alongside federal securities claims, and courts permit punitive awards on these state claims.
Securities Arbitration: While federal law bars punitive damages in court, arbitrators in securities disputes can award them, particularly when combined with common law fraud or breach of fiduciary duty claims, as this provides a way to deter bad behavior.
In Summary: If your case is only a federal securities claim, you're generally out of luck for punitive damages; however, adding state-law claims or going to arbitration opens the door for these significant awards.