Securities fraud occurs not only when a fact is misrepresented but also when a significant fact is omitted in the sale of a security. So failing to disclose information such as conflicts of interest or the level of risk of an investment is just as fraudulent as a lie about the investment.
Financial Advisor Negligence or Malpractice
Like other businesses, stock brokerage firms are liable for the actions of their brokers. So if a broker commits negligence and those actions cause loss, investors have recourse against the brokerage firm.
Investment Advisor Breach of Fiduciary Duties
Investment advisors generally have heightened duties to the advisors’ clients. Investing inappropriately or failing to place the investor’s interests over the advisor’s interests violates the advisor’s fiduciary duties.
Suits Concerning Unsuitable Securities
Investments can only be recommended to an investor if such investments are suitable for such investor. Suitable investments are investments that are consistent with an investor’s risk tolerance and investment objectives. If a person is approaching retirement and needs conservative investments that provide income, but is instead recommended high-risk investment(s), that person may have recourse for being sold an unsuitable investment.
FINRA Arbitration and Mediation
Disputes concerning investment brokerage accounts are generally required to be resolved through FINRA. The rules of FINRA are different than the rules used in litigation and other arbitration forums. We are experienced in the handling of disputes through FINRA and have handled hundreds of such disputes through FINRA and its predecessors the NASD and NYSE.
Arbitration is different than litigation and requires a different set of skills. We are experienced arbitration attorneys.