Seeking Compensation: Understanding Damages in Investment Fraud Cases

If you are a victim of investment fraud, you may wonder how much money you can recover, especially when you have to hire an attorney to recoup your losses. An experienced securities fraud lawyer from Erez Law PLLC will determine the type and amount of damages you may be entitled to, including:

Compensatory Damages

Compensatory damages are awarded to make the securities fraud victim whole as if they had not sustained the financial losses they incurred. This type of compensation covers the actual losses suffered from the purchase or sale of the security, which may include:

  • Gains or profits lost due to the fraud
  • The purchase prices and fees paid by the victim
  • The actual value of the investor’s security
  • Interest and dividends

Rescission

Rescission damages are meant to return the contracting parties to their status as if the transaction had never occurred. The wronged party may choose to void the agreement or to recover damages. Given the nature of this remedy, a claim for rescission must be filed shortly after discovering the fraud. Rescission is often granted as statutory relief under a state’s securities act.

Benefit of the Bargain Damages

Benefit of the bargain damages are intended to put victims of securities fraud in the position they would be in had the representations made to the investor materialized. If a broker misrepresented to an investor that they will achieve a 7% rate of return, then an arbitration panel may award a 7% return in addition to any loss of principal.

Well-Managed Damages

Well-managed damages are designed to award damages to an investor based on how a proper and suitable portfolio would have performed. The damages are based on the premise that if the broker engages in wrongdoing, the investor should not be denied returns that they could have achieved.

Legal Costs and Fees

In addition to the losses you sustain related to the securities fraud, you may be compensated by the defendant for any attorney’s fees you incur and pre-judgment interest related to your financial losses.

Punitive Damages

The purpose of punitive damages, also referred to as exemplary damages, is to punish the wrongdoer for their fraud and to deter similar behavior from other bad actors. These are civil penalties imposed on the defendant because of any profits or gains they realized from the illegal transaction. The amount of punitive damages can vary widely from case to case. Erez Law has recovered punitive damages in several notable cases.

Contact an Investment Fraud Lawyer for Help

A securities fraud attorney from Erez Law PLLC can calculate the total value of your financial losses and seek maximum compensation. We work with expert witnesses skilled in deciphering what compensation you are entitled to for the harm to your portfolio. We work on a contingency fee basis, so you do not have to worry about paying any attorney’s fees upfront. Instead, we will deduct our fee from your successful recovery.

At Erez Law PLLC, we have recovered over $200 million for the victims of all types of investment fraud. Our nationally recognized firm has tried over 50 cases in arbitration. With a securities fraud lawyer from Erez Law PLLC on your side, you have the benefit of over 35 years of experience to help you pursue the compensation you deserve in an investment fraud case. Call us today for a free consultation.