Can You Sue for Breach of Fiduciary Duty?

When a broker or investment firm violates their fiduciary duty, they can be held accountable for the financial harm they cause. A breach of fiduciary duty is a serious offense that can lead to compensatory damages, reimbursement of legal costs, and, in extreme cases, fines, suspensions, or even the revocation of a brokerage license. 

The experienced attorneys at Stock Market Fraud Law Firm have dedicated their careers to helping victims of fraud and negligence recover their financial losses and hold wrongdoers accountable. If you believe that your stockbroker or financial advisor breached their fiduciary duty to you, and you suffered financial loss as a result, we want to hear your story.

What Is Fiduciary Duty?

A fiduciary duty is the legal obligation to act in the best interest of another party. In the context of investing, brokers, financial advisors, and investment firms have a fiduciary duty to their clients. This means they must exercise good faith, loyalty, and care when managing investments, providing advice, and executing trades.

At its core, fiduciary duty includes several key responsibilities:

• Loyalty: The fiduciary must prioritize the client’s interests over their own financial gain.
• Full Disclosure: Any potential conflicts of interest must be disclosed to the client.
• Prudent Management: Investments should be handled with care and sound judgment.
• Fair Dealing: Transactions must be conducted in a manner that is fair and transparent.

When a broker or investment firm fails to uphold these duties, they may be held liable for breach of fiduciary duty.

What Happens If a Fiduciary Duty Is Breached?

If a broker or firm breaches their fiduciary duty, the consequences can be severe. Investors who suffer financial losses due to misconduct may be entitled to recover damages. This is a cause of action in every claim we file. Our legal team at Stock Market Fraud Law Firm understands the complexities of these cases and fights to hold wrongdoers accountable.

Potential outcomes of a breach of fiduciary duty claim include:

• Compensatory Damages: Reimbursement for financial losses suffered due to the breach.
• Legal Costs and Fees: In many cases, the responsible party may be required to cover the costs of bringing the lawsuit.
• Regulatory Sanctions: Depending on the severity of the breach, brokers may face fines, suspensions, or even permanent revocation of their brokerage license.

Common Examples of Fiduciary Breach

While every case is unique, some of the most common fiduciary breaches include:

• Excessive Trading (Churning): Brokers executing unnecessary trades to generate commissions.
• Unsuitable Investments: Recommending investments that do not align with the client’s risk tolerance or objectives.
• Failure to Diversify: Over-concentrating investments in a single stock or sector, exposing clients to unnecessary risk.
• Undisclosed Conflicts of Interest: Steering clients toward investments that benefit the broker rather than the client.
• Misrepresentation or Omission of Material Facts: Failing to disclose important information about an investment.

If you suspect your broker engaged in any of these unethical behaviors, it’s crucial to seek legal counsel as soon as possible. The experienced attorneys at Stock Market Fraud Law Firm have extensive experience handling a wide range of claims involving a breach of fiduciary duty. During your FREE consultation, we will listen to your story, assess the merits of your claim, and explain your legal rights and options.

How to Prove a Breach of Fiduciary Duty

To successfully sue for breach of fiduciary duty, the following elements must be established:

1. Duty Existed: The broker or firm owed a fiduciary duty to the client.
2. Breach Occurred: The fiduciary failed to act in the client’s best interest.
3. Damages Resulted: The client suffered financial losses due to the breach.
4. Causation: There is a direct link between the breach and the damages suffered.

At Stock Market Fraud Law Firm, we meticulously build cases to prove these elements, ensuring our clients receive the justice and compensation they deserve.

Why Choose Stock Market Fraud Law Firm?

Taking legal action for breach of fiduciary duty can be complex, but you don’t have to go through it alone. Our firm has a proven track record of success in holding brokers and investment firms accountable. Here’s why investors trust us:

• Experience in Securities Litigation: We specialize in cases involving investment fraud and fiduciary breaches.
• Aggressive Representation: We don’t back down from taking on powerful financial institutions.
• Client-Focused Approach: We prioritize your financial recovery and well-being.
• No Fees Unless We Win: You don’t pay us unless we secure compensation for you.

Talk to an Experienced Lawyer Today for FREE

If you believe your broker or investment firm breached their fiduciary duty, don’t wait. The sooner you take legal action, the better your chances of recovering your losses. Contact our attorneys today for a FREE consultation. Our team is ready to fight for you and help restore your financial security.
Call (888) 513-3010  today for a FREE case evaluation with an experienced securities fraud lawyer. We serve clients throughout the state of Florida and Nationwide.