As part of our business litigation practice we pursue litigation on behalf of investors against brokers, financial advisors, brokerage firms, and investment advisors. Through our investor loss litigation, we have assisted many investors recover losses from stocks, bonds, mutual funds, variable annuities, and other investments as a result of broker or financial advisor misconduct. While each investor loss case is unique, we find that the typical case involves a claim of one or more of the following:
- Unsuitable Investments or Investment Strategies;
[An investment is unsuitable if it is inconsistent with the investor's objectives, and the broker knows or should know the investment is inappropriate for the investor. In recommending investments to investors, a broker should take into consideration the investor's financial circumstances and needs, including their prior investment experience and tolerance for risk.]
[Churning occurs when a broker excessively trades, i.e. induces transactions in the account that are excessive in size and frequency in light of the character of the account, for the purpose of increasing his or her commissions, rather than to advance the customer's interests.]
[Unauthorized trading occurs when a broker purchases or sells securities in an investor's account without the investor's prior authorization.]
[Our typical fraud case involves misrepresenting fees and costs of an investment, failing to disclose risks and disadvantages associated with an investment or investment strategy, and/or failing to disclose conflicts of interest]
- Breach of Fiduciary Duty;
- Broker Neglect; and
- Failure to Supervise .
Most of our investor loss clients are contractually obligated to arbitrate their dispute through one of the securities industry's arbitration forums. As a result, many of our investor loss cases are filed with NASD Dispute Resolution, Inc., the largest securities arbitration forum and the dispute resolution arm of the National Association of Securities Dealers, Inc. According to NASD statistics, approximately 54% of all cases filed with NASD Dispute resolution are resolved through direct settlement between the parties or through mediation.1
If you are interested in learning more about our investor loss litigation, please contact Thomas A. Schultz, a partner at our firm, or his associate, Kyle E. Lakin.
1Source: 2004 NASD Dispute Resolution Statistics at www.nasd.com.
