When an investor hands over hard-earned money to a stockbroker, the investor expects, at a minimum, honesty, and fair dealing by the broker. Stockbrokers are licensed professionals that are regulated by a professional governing body, federal laws, and state laws. Unfortunately, unscrupulous stockbrokers take advantage of our trust and belief in the regulatory system, and investors suffer significant financial losses because of stockbroker misconduct. When a broker pushes an investment on an investor and fails to disclose that the investment is the subject of relevant litigation in progress, the stockbroker commits fraud. If you have suffered financial losses because of fraud like this, the misleading or incomplete stock information attorneys at Erez Law are ready to help you hold them accountable.
The Duty of the Broker
The laws that protect investors from stockbroker fraud or investment fraud are very complicated. Federal laws, state laws, previous decisions in courts, agency regulations, agency rules, and agency policy memorandums all interplay to provide investors protection and remedies for the fraudulent actions of stockbrokers. These complex laws create a minefield, and the slightest procedural mistake, such as missing a deadline, could cause your claim to be dismissed, and you may lose your opportunity to recover your losses. It is necessary to have a competent lawyer to avoid these pitfalls and recover the money you lost. However, not all lawyers have sufficient experience or resources to competently represent an investor that has suffered losses because of stockbroker fraud. It is important to hire the right lawyer to help you with your claim.
How Erez Law Can Help
Erez Law can help recover your losses as a victim of stockbroker fraud. Our firm only represents victims of investment fraud. We have successfully recovered losses for victims of investment fraud for over 20 years. Not only do we take pride in ourselves for our firm’s 99% success rate, but we also take pride in ourselves for the client service that we provide. Our clients speak directly with an attorney in our firm. Paralegals or legal assistants do not handle our client’s cases. As a client of Erez Law, you will speak directly with a lawyer.
Furthermore, Erez Law has the resources, infrastructure, and manpower to take on the big firms that brokerage firms and corporations hire to defend their wrongdoing. We will not lose the game of attrition that the big firms employ by running up expenses until you are forced to quit. We can stand toe to toe with the big firms because of our resources. Also, no lawyer will be more prepared and knowledgeable of investment fraud laws than our attorneys.
Disclosing Relevant Litigation in Progress
Stockbrokers are professionals that must pass an exam to become licensed. They are regulated by the Financial Industry Regulatory Authority(FINRA). Stockbrokers handle investor’s money and are held to the highest standards in the handling of that money.
In 1934, Congress created the Securities and Exchange Commission(SEC). The SEC prohibits stockbrokers from making misrepresentations regarding investments. Material omissions are the same as misrepresentation. A stockbroker’s failure to disclose that an investment is the subject of relevant litigation in progress is a material omission that constitutes fraud. Federal laws, state laws, prior court decisions, regulations published by the SEC, and rules published by FINRA prohibit a stockbroker from misleading an investor by failing to disclose that the investment is the subject of relevant litigation in progress.
Relevant litigation includes lawsuits by corporate shareholders for securities fraud or for corporate misconduct. Securities fraud could include corporations cooking the books or spreading false information to inflate the value of their stock falsely. It also could consist of pump and dump schemes or insider trading by corporate officers. Federal and state laws criminalize this type of conduct to protect investors. Before investing in a company, an investor has a right to know if the company is being accused of securities fraud. A stockbroker must disclose to the investor that the investment is the subject of relevant litigation in progress. If a stockbroker does not disclose this fact, the stockbroker has committed stockbroker fraud.
If you have suffered losses because the stockbroker did not disclose to you that the investment is subject to relevant litigation in progress, you may be able to take legal action against them. You could go to arbitration or may wish to file a lawsuit in federal or state court. The brokerage firm that employs the unscrupulous stockbroker is responsible for the stockbroker’s fraudulent acts.
A stockbroker has a legally binding duty to an investor not to provide misleading or incomplete information regarding an investment. When a stockbroker provides misleading or incomplete information regarding an investment, the stockbroker commits stockbroker fraud or investment fraud. Misleading or incomplete information provided to an investor regarding an investment includes failure by the stockbroker to disclose to the investor that the investment is the subject of relevant litigation in progress. If your stockbroker did not disclose to you that your investment is the subject of relevant litigation in progress, you might be eligible to file a lawsuit against the person and their brokerage.
If you have suffered financial losses because your stockbroker failed to disclose to you that your investment is the subject of relevant litigation in progress, call Erez Law today. Do not wait to take action. Stockbroker fraud claims are subject to time limitations, and you may lose your opportunity to recover your losses if you don’t act today.
Erez Law has more than 20 years experience representing victims of investment fraud. We have the resources and manpower to ensure that you recoup the money you lost due to misleading or incomplete information from your broker. Don’t be a victim twice. Do not be a victim of an incompetent lawyer as well in addition to being a victim of stockbroker fraud. Call us to ensure that you claim for stockbroker fraud is filed timely and handled properly. Call now for a free legal consultation and case evaluation. Call (888) 840-1571.