For two decades, Sadis & Goldberg has represented investors, investment advisers, industry professionals and brokerage firms in the financial services industry. What makes our law office different is that not only do our securities attorneys have a wide range of experience, but many of them are also SEC attorneys. We’ve won countless multi-million dollar securities arbitrations, verdicts, awards, and settlements for clients. In this blog post, we are going to dive into some of the more common claims of clients.
- Misrepresentation – This occurs if a broker fails to give you all the information about an investment opportunity or fails to disclose risks. Misrepresentation lawsuits can be innocent, negligent, or fraudulent. In any case, you have the right to sue.
- Breach of Fiduciary Duty – Brokers and brokerage firms have a duty to act in the best interest of another party. This is what’s known as “fiduciary duty.” For example, a corporation’s board member has a fiduciary duty to the shareholders while a trustee has the same duty to the trust’s beneficiaries. Keep in mind that brokerage firms and brokers can be held responsible for abusing the investor’s trust and, in turn, breaching their fiduciary duties.
- Suitability – When you first establish a relationship with your broker, their advice should fit within your criteria, meet your financial goals, and match your risk tolerance and overall situation. Along with other financial representatives, brokers are expected to do business under what’s called the “Suitability Standard.” This essentially means that they must recommend strategies and products that are suitable for their particular situation. Note that the brokerage firm could be held liable for your losses when a broker suggests unsuitable investments and you wind up losing money.
- Churning – The SEC defines churning as “excessive buying and selling in your account by the broker.” Why would a broker engage in churning you might ask? Well, they want to generate additional commissions. For any financial losses that come out of the churning process, both the broker and their firm may be held liable.
- Overconcentration – This ranks as one of the riskiest strategies a broker can implement. It’s fairly common knowledge that the most successful portfolios are ones that are diverse. With overconcentration, brokers are putting all your eggs in one basket. So let’s say you requested safe and secure investments with solid growth expected over time. However, your broker invested a large percentage of your account into one security, one sector of the economy, or one type of investment. In this case, overconcentration has occurred.
- Failure to Execute – Maybe you recently requested an order to be placed on your behalf. If your broker failed to timely execute that order, you may be eligible to recover losses associated with the failure to execute.
- Negligence – Broker negligence, or malpractice, involves any conduct that falls below the set standard of care that a reasonable, prudent person would have used in the same situation.
A Securities Attorney You Can Trust
It can be difficult to pick from the many securities law firms in the Tri State area. That said, Sadis & Goldberg specializes in securities litigation cases. Our trial lawyers don’t just simply dabble in these areas. By doing so, the litigation lawyers at our practice are able to demonstrate unmatched results in high-stakes cases.
Don’t just settle for any trial attorney to take on your claim. Instead, see what one of our securities lawyers can do for you.
Call now to speak to an attorney.